• Gold rose on Monday, adding to the largest weekly gain since mid-April, as declines in the U.S. dollar index sent prices to the highest finish in three weeks.
• June gold GCM7, +0.12% tacked on $7.80, or 0.6%, to settle at $1,261.40 an ounce—the highest settlement since April 28, according to FactSet data.
• The greenback “continues to come under pressure amid continuing political controversy around the Trump administration,” said James Woods, global investment analyst at Rivkin, in a note Monday. “However, this is unlikely to deter the [Federal Open Market Committee] from hiking rates when it meets” in June.
• Financial markets now rate the probability of the U.S. Federal Reserve’s policy-setting committee raising interest rates at its next meeting in mid-June as being roughly 70%. That is down from nearly 100% odds priced in earlier this month but still shows that many are convinced the Fed is ready to move again. Higher rates tend to make gold, which doesn’t bear a yield, less appealing relative to other investments.
• “Rhetoric suggesting the central bank remains on track to raise rates next month despite recent U.S. political jitters may weigh on gold” as the week goes on, said Ilya Spivak, currency and commodities strategist with Daily FX.
• On Monday, Robert Kaplan, president of the Dallas Fed, said he expects the U.S. central bank to raise short-term interest rates twice more this year.
• In other metals, July silver SIN7, -0.03% rose 39.5 cents, or 2.4%, to $17.191 an ounce.
Reference: Market Watch
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