Investing.com - Gold prices inched up on Monday ahead of the Federal Reserve’s latest monetary policy meeting later in the week, at which Fed Chair Jerome Powell was widely expected to lay the groundwork for rate cuts later this year.
Gold futures for August delivery, traded on the Comex division of the New York Mercantile Exchange, edged up 0.1% to $1,345.45 by 12:15 AM ET (04:15 GMT).
The Fed’s meeting on Wednesday is expected to be the biggest event for the yellow metal this week. No rate cuts are expected on Wednesday’s meeting, but markets have steadily been increasing bets for rate cuts later in the year amid concerns that the outlook for global growth is weakening amid fallout from trade tensions.
On June 4, Fed Chairman Jerome Powell said the central bank would act "as appropriate" to address risks to the economy arising from the U.S.- China trade dispute.
In general, gold benefits from lower interest rates that lower the opportunity cost of holding the non-yielding bullion.