Gold climbs to new record-high above $3,700, eyes on Fed speeches

LONDON (September 22) 

Gold builds on its bullish action to end the previous week and trades at a new record-high above $3,700 on Monday. In the absence of high-impact data releases, investors will pay close attention to comments from policymakers of major central banks on Monday.

Following a three-day rally, the US Dollar (USD) holds steady in the European morning on Monday, with the USD Index moving sideways above 97.50. The Federal Reserve's (Fed) cautious tone on further policy easing and upbeat data releases from the US seen in the second half of last week continue to support the USD. In the meantime, US stock index futures lose about 0.2% to start the European session, reflecting a cautious market mood. Fed policymakers John Williams, Alberto Musalem, Thomas Barkin, Beth Hammack and others will be delivering speeches later in the day.

Gold benefits from escalating geopolitical tensions and continues to push higher after rising more than 1% on Friday. News of NATO forces intercepting three Russian MiG-31 fighters after they entered Estonia's airspace keeps investors on edge. US President Donald Trump expressed his displeasure at the incursion and said he would help defend European Union members if Russia intensified hostilities.

FXStreet