Gold jumps over 2% at close

Gold bars

Gold prices surged more than 2% at Monday’s close, as investors awaited the US Federal Reserve’s policy meeting set to begin on Tuesday and conclude Wednesday, amid ongoing trade developments.

June gold futures rose 2.4%, or $77.87, to settle at $3,322.3 an ounce, rebounding after a 1.67% loss last week.

The gains in gold coincided with a decline in the US dollar index—which measures the greenback against a basket of six major currencies—down 0.1% to around 99.93 as of 9:40 p.m. Mecca time.

The Fed is widely expected to hold interest rates steady following the conclusion of its meeting on Wednesday, despite repeated calls from US President Donald Trump for lower borrowing costs.

Analysts at Deutsche Bank said in a note on Monday that the Fed is likely to keep rates unchanged while refraining from issuing any explicit forward guidance on the future direction of monetary policy.