Gold prices firmed on Monday amid expectations of a U.S. rate cut in September and rising geopolitical tensions in the Middle East, while focus shifted to the Federal Reserve’s policy meeting due later this week.
FUNDAMENTALS
* Spot gold was up 0.5% at $2,397.65 per ounce, as of 0025 GMT. U.S. gold futures climbed 0.7% to $2,396.70.
* The U.S. central bank’s Federal Open Market Committee meets on July 30-31 and is expected to keep rates unchanged at 5.25%-5.50%. However, softer U.S. jobs data in June, cooling and comments from top Fed officials have prompted the rate futures market to fully price in a 25 basis-point cut in September.
* Bullion, historically reputed for its stability as a favoured hedge against geopolitical and economic risks, thrives in a low-interest rate environment