Investing.com reports Gold prices inched higher on Tuesday in Asia with the Bank of Japan slated to issue its latest monetary policy views and investors looking for language from the Fed on Wednesday that may signal caution on the economic growth outlook.
Gold Futures Futures for April delivery on the Comex division of the New York Mercantile Exchange rose 0.31% to $1,199.65 a troy ounce. Also on the Comex, silver futures for March delivery gained 0.21% to $17.188 a troy ounce, while copper futures fell 0.11% to $2.666 with markets in the world’s top importer, China, closed through Thursday for the Lunar New Year.
Overnight, gold gained in the U.S. on Monday with a weaker dollar and with concerns over a travel ban to the U.S. for seven predominantly Muslim countries leading to a move to safe-haven assets such as gold and as expectations grow for the Fed to issue cautious language in its latest policy statement on Wednesday.
Appetite for safe-haven assets improved after Trump suspended travel to the United States from Syria, Iraq, Iran and four other Muslim-majority countries on Friday, saying the moves would help protect Americans from terrorist attacks. The executive order led to huge protests in many U.S. cities and sparked global backlash, raising worries about the potentially destabilizing impact of Trump’s policies.
As well as the Fed due on Wednesday, global financial markets will be busy with central bank meetings in the week ahead, with a policy decision due in the U.K. as well. Investors will also keep an eye out on key economic data, with the monthly U.S. employment report in the spotlight.
In earlier trade, the dollar fell more than 1% against the safe haven yen on Monday as the travel ban put in place by President Donald Trump added to concerns over the potential economic ramifications of the new administration’s policies.
Data on Monday showed that U.S. consumer spending increased in December, rising 0.5% after a 0.2% increase in November. Personal income rose 0.3% last month after edging up 0.1% in November.
A separate report showed that U.S. pending home sales rose by 1.6% in December, ahead of forecasts for a 1.1% increase.