Gold trading this week will be dominated by the US interest rate announcement.
Gold prices are a touch higher at mid morning in London.
The price of spot gold is up 0.26% at $1104 per ounce. Comex gold prices are higher by a similar percentage.
"Gold trading this week will be dominated by the US interest rate announcement. The FOMC are scheduled to announce their decision tomorrow, with traders looking to see if there is a fundamental shift in their stance that interest rates are to remain at exceptionally low rates for an extended period," reports ODL Markets in a morning briefing.
Gold continues to have found some support at eh $1,100 level, so it will be interesting to note reaction on Tuesday.
Simon Denham at Capital Spreads provides further technical insight:
"After touching 1.52 earlier this morning, cable has had a sharp correction to the downside now back below the 1.51 mark, and is looking relatively unhappy around these levels."
The weakness for sterling and euro this morning has assisted gold, which continues to find support at the 1100 level. The support is being provided by the news flow from China over the week end, as they have made it clear they are concerned about their billions of US dollar investments says Denham.
Whilst they make continue to make noises about switching into other alternative reserves such as gold, any rational investor knows that gold is a risky investment, the price of which can go down just as easily as it can go up.
