Gold futures headed higher early Monday, supported partly by weakness in the U.S. dollar.
was trading up $9 to reach $1,793 an ounce, a gain of 0.5%, after bullion logged a weekly advance of 0.3%, its second in a row, according to Dow Jones Market Data.
Moves higher for the yellow metal come ahead of an economic policy symposium where Federal Reserve Chairman Jerome Powell on Friday may indicate that the central bank will slow monthly purchases of Treasurys and mortgage-backed securities that had helped to prop up financial markets during the height of pandemic-induced selling in spring of 2020.
“Why is the Jackson Hole symposium so crucial? The reason is simple: gold traders, as well as stocks or bond investors, are expecting further guidance in regard to the Federal Reserve’s tapering timeline,” wrote Carlo Alberto De Casa, market analyst at Kinesis, in a Monday research note.
“Any dovish indication could help gold to continue its recent rebound, while an expedited beginning of the tapering procedure could be seen as a negative catalyst for bullion,” the analyst wrote.
Helping lift gold was a softer dollar, as measured by the ICE U.S. Dollar Index
a gauge of the currency against a basket of a half-dozen rivals. The dollar index was down 0.2%.
A weaker dollar can make assets priced in the currency, like gold, appear more attractive to overseas buyers.
Meanwhile, silver for September delivery
was trading 37 cents, or 1.6%, higher at $23.48 an ounce, following weekly decline of 2.8% on Friday.