Gold prices rise as dollar rally pauses, investors await Fed guidance

Investing.com -- Gold prices rose by about 1% on Monday following a drop last week, as the rally in the dollar slowed. 

Investors were also awaiting comments from the U.S. Federal Reserve officials for further guidance on the future direction of interest rates.

By 4:50 ET (9:50 GMT), spot gold was up 1.2% to $2,593 per ounce. U.S. gold futures saw a similar rise, climbing 1% to $2,597.

The gains came after a six day losing streak for the yellow metal.

"The gold price has fallen 6% since the US election on 5 November, marking the worst post-election week since 1980 when Ronald Reagan became US president," said analysts at UBS in a note.

The dollar remained steady after a 1.6% increase last week. A weaker dollar makes gold more affordable for those holding other currencies. 

This week, several U.S. central bank officials are scheduled to speak. Strong U.S. economic and inflation reports are continuing to influence discussions among Federal Reserve policymakers about the pace and scale of potential rate cuts. 

Last week, investors reduced their expectations for a rate cut in December after the latest data showed U.S. retail sales had exceeded expectations, underscoring the economy's strength.

Source: Investing.com