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Gold Back at $1500 on Oil-Market Pop

Investing.com - Gold returned to $1,500 Monday, riding the coattails of the biggest oil rally in three decades ahead of a Federal Reserve meeting later in the week.

U.S. gold futures for December delivery settled up $12, or 0.8%, at $1,511.50 per ounce on the Comex division of the New York Mercantile Exchange.

Gold rose after attacks on Saudi Arabia gave oil prices their largest intraday gains since the 1991 Gulf War.

Spot gold, reflective of trades in bullion, also returned above the key $1,500 level. By 2:40 PM ET (18:33 GMT), bullion was trading up $12.44, or 0.8%, at $1,501.18.

The Fed convenes on Tuesday and is expected to announce lower rates in its monthly policy update due on Wednesday. Investing.com’s Fed Rate Monitor Tool gives a 65% chance that the central bank will cut rates by 25 basis points.

“Given that the market is pricing in additional 60bp of cuts by end-2020, forward guidance will be key,” analysts at TD Securities said in a note.

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