The prices of gold advanced on Monday in Asia as investors looked ahead to the policy makers of the Federal Reserve meeting this week, as conflicting U.S. data clouded the outlook for higher interest rates.
Gold is slightly changed earlier this month after dropping during February and March, as investors gauge data for indications as to when the Fed rate increases may begin. The Fed begins a two-day meeting on Tuesday after reports on the housing market and commercial equipment orders. Investors gold holdings for the second consecutive week expanded, while Greece is seeking ways to earn enough money to pay its pensioners and employees.
At comex, gold futures for June delivery rose 0.41% to $1,179.80. Bullion for immediate delivery rose as much as 0.4 percent to $1,183.83 an ounce in London
Orders for business equipment declined in March for a seventh straight month, Commerce Department data showed on Friday, a sign of US business spending will still be slow. The demand for all durable goods rose 4% in aircraft and automobiles. The reports last weekend showed that sales of existing homes rose in March, while new purchases fell more than anticipated.
Holdings in bullion exchange-traded products backed by bullion increased for the sixth longest consecutive day since 29 January.
On the week, market participants will focus on holding the monetary policy meeting of the Federal Reserve two days on Wednesday, which could give some indication of what could as soon raise interest rates.
Investors will also be looking ahead to the producing preliminary data on first quarter growth figures in the United States for more indications over the strength of the economy.
Gold prices rose in domestic futures trade today amidst positive cues from the global market. At the Multi Commodity Exchange, gold June futures quoted higher by Rs 64, or 0.24%, at Rs 26,765 per 10 grams.
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