Gold prices rose in Asian trading on Monday, amid expectations of a U.S. interest rate cut in September and rising geopolitical tensions in the Middle East, while focus shifted to the Federal Reserve's monetary policy meeting later in the week.
Update prices
Spot gold rose 0.5 percent to $2,397.65 an ounce by 0025 GMT. U.S. gold futures rose 0.7 percent to $2,396.70.
The U.S. central bank’s Federal Open Market Committee meets on July 30-31 and is expected to leave interest rates unchanged at 5.25 percent to 5.50 percent. But weaker U.S. jobs data in June, slowing inflation and comments from top Fed officials have prompted futures markets to fully price in a 25 basis point cut in September.
On the geopolitical front, Israel’s security cabinet has authorized Prime Minister Benjamin Netanyahu to decide how and when to respond to Saturday’s rocket attack on the Golan Heights that killed 12 children and teenagers. Israel and the United States have blamed the Lebanese Hezbollah group for the attack.
Among other precious metals, spot silver rose 0.9 percent to $28.14 an ounce, platinum rose 0.9 percent to $943.49 and palladium rose 1.1 percent to $909.71 an ounce.
