Overnight, the U.S. dollar index dropped to a nine-week low giving gold and its precious metals family a boost.
Investors are still looking for signals on Brexit, the U.S.-China trade talks and whether the Federal Reserve will cut interests rates for a third time at the end of the month.
Bullion slipped 0.3% Friday to settle at $1,494.10 an ounce on Comex. It has closed below the key $1,500 threshold for six consecutive sessions. Gold increased 0.4% last week. This morning, the December contract is up to $1,498.10.
U.K. Prime Minister Boris Johnson is pushing for a “straight up and down vote” in Parliament on Monday over the agreement he reached with the European Union last week, the BBC reported. Johnson was forced by law to send a letter to the EU over the weekend, asking for a new Brexit delay, but he didn’t sign it and sent another saying that it was a bad idea. The U.K. is scheduled to depart the EU on Oct. 31st.
Chinese Vice Premier Liu He said Saturday that the U.S. and China had made “substantial progress” in many fields, setting the stage for a signed agreement. The trade standoff between the two countries has weighed on the global economy and boosted gold earlier this year as a hedge against uncertainty.
Investors continue to look at economic data for signs on the health of the global economy and indictors about monetary policy from the Fed and other central banks.
Currently, the CME FedWatch Tool shows that 92.5% of investors think the Fed will reduce interest rates by 25 basis for a third consecutive time when policy makers meet on Oct. 30th. The probability of no change was 7.5%. The European Central Bank has a monetary-policy decision scheduled for Thursday.
In economic news this week, the U.S. will announce existing-home sales on Tuesday and initial jobless claims on Thursday.
Investors are also keeping a close eye on U.S. politics, including the impeachment inquiry into President Donald Trump. Over the weekend, Trump abandoned plans to host next year’s Group of Seven summit as his private golf club in Miami after the move alienated Republicans and became part of the Democratic-led impeachment inquiry.
Silver’s gains last week outpaced gold’s. The metal increased 1.2% to end the week at $17.58 an ounce Comex. The December contract slipped 0.2% Friday. It’s up 3.4% so far this month.
Spot palladium dropped Friday but rose 3.3% last week. Spot platinum was higher Friday but dropped 0.5% last week.
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