Gold prices moved higher on Tuesday, extending gains from previous session, as investors continued to weigh the likely impact of higher crude oil prices on the global economy and also looked ahead to the Federal Reserve’s monetary policy.
The dollar index weakened to 98.19 and was last seen at 98.23, down nearly 0.4% from previous close.
Gold futures for December ended up $1.90, or 0.1%, at $1,513.40 an ounce.
On Monday, gold futures for December ended up $12.00, or about 0.8%, at $1,511.50 an ounce.
Silver futures for December ended up $0.114 at $18.140 an ounce, while Copper futures for December settled at $2.6270 per pound, down $0.0135 from previous close.
The Federal Reserve is widely expected to cut interest rates by 25 basis points to boost economic growth.
The Bank of Japan, the Swiss National Bank and Bank of England are also scheduled to announce their monetary policies this week.
Investors were also tracking the developments on U.S.-China trade front and geopolitical issues.
U.S. President Donald Trump has indicated the U.S. is prepared to respond militarily but has stopped short of definitively blaming Iran for the attacks.
On the U.S. economic front, the Fed released a report showing industrial production rebounded by much more than anticipated in the month of August.
The report said industrial production climbed by 0.6% in August after edging down by a revised 0.1% in August.
Economists had expected industrial production to rise by 0.2% compared to the 0.2% dip originally reported for the previous month.
A separate report from the National Association of Home Builders showed an unexpected improvement in U.S. homebuilder confidence in the month of September.
The report said the NAHB/Wells Fargo Housing Market Index inched up to 68 in September from an upwardly revised August reading of 67.
The material has been provided by InstaForex Company – www.instaforex.com