Gold futures were seen trading flat on Monday, steady below the $1,300-level per ounce as investors speculate on the Federal Reserve (Fed) and hoping it will keep its bond-buying program until the end of the year.
Gold futures dropped 0.07% lower, trading at $1,286.60 per ounce at the time of writing, while silver futures edged 0.30% lower at $20.670 per ounce.
The US dollar index, which measures the strength of the US dollar against a basket of six of its major peers, edged 0.07% lower, standing at 80.792 points. Holdings in the SPDR Gold Trust came in at 865.71 tones on Friday.
The yellow metal has been trading below the $1,300 threshold per ounce as investors continue to speculate about how long the Federal Reserve will keep its monthly bond-buying program at its current pace.
On November 14th, Fed Chairperson nominee Janet Yellen said she would support the central bank’s monetary policy until the US economy is stronger.
Yellen said the US economy still needs to work on the growth of the economy and the unemployment rate as it remains high.
The current Fed Chairman Ben Bernanke is expected to give a speech on Tuesday, while minutes from the Federal Reserve’s (Fed) October meeting are expected to be released on Wednesday, November 20th.
Analysts are worried over the possibility that the central bank may start to taper its bond-buying program at its next meeting, scheduled for December 17-18.
Recent data released reveals that the number of non-farm payrolls climbed 204,000 higher in October, while the US economic growth expanded an annualized 2.8% in the third quarter.
However, some analysts are predicting that the Federal Reserve will begin tapering its asset-purchasing program at the March meeting.
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