Gold Prices Edge Higher as Dollar Rally Pauses Ahead of Fed Meeting
Gold prices experienced a modest increase on Monday, continuing the upward trend from the previous week. This comes as the U.S. dollar rally, which has previously exerted downward pressure on the value of the precious metal, appears to be stabilizing in anticipation of an upcoming Federal Reserve policy meeting.
In the early U.S. trading session on Monday, both gold and silver prices saw a slight rise. This muted movement in precious metals markets is largely attributed to Japanese traders being on holiday and global investors awaiting remarks from Federal Reserve Chairman Jerome Powell.
The Federal Reserve's two-day policy meeting for September is set to conclude this Wednesday. Market participants widely anticipate that the central bank will maintain steady interest rates.
Meanwhile, the ICE U.S. Dollar Index DXY, a measure of the strength of the U.S. dollar against a basket of competitor currencies, remained stable at 105.34. The pause in the dollar's rally seems to be contributing to the early-week stability in precious metals markets, as investors await key monetary policy decisions from the Federal Reserve.
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