Gold Prices Gain In Asia With Chinese New Year Trade In Focus
Gold prices gained in Asia on Monday with financial markets in Japan will be closed for a holiday and demand eyed in greater China watched with the Lunar New Year holidays set to kick off this week.
Gold futures for April delivery rose 0.74% to $1,325.60 on the Comex division of the New York Mercantile Exchange.
Investors this week are watching inflation readings from the U.S., UK and Germany.
Last week, gold prices edged lower on Friday in what was a fifth day of declines in the last six sessions as the stronger dollar weighed on the precious metal, making it more expensive for holders of other currencies. The dollar was supported by increased safe haven demand from investors amid dramatic moves in the equities and bond markets. U.S. stocks ended higher on Friday, but still suffered their steepest weekly losses in more than two years.
Market turbulence has been triggered by speculation that the Federal Reserve may raise interest rates at a faster rate than had been expected amid signs of a pickup in inflation. Expectations for higher interest rates are typically negative for gold as the precious metal struggles to compete with yield-bearing assets like Treasury’s when borrowing costs rise.
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