Gold futures rose early Monday, helped in part by the weakness of the US dollar.
December gold GCZ21, +0.64%, rose $ 9 to hit $ 1,793 an ounce, a 0.5% gain after gold rose 0.3% weekly, the second in a row, according to the Dow Jones Market Data.
The upward move for the yellow metal comes ahead of an economic policy symposium at which Federal Reserve Chairman Jerome Powell could point out Friday that the central bank will slow the monthly purchases of government bonds and mortgage-backed securities that had helped drive the financial markets during the peak of the year to prop up pandemic sales in the spring of 2020.
“Why is the Jackson Hole Symposium so important? The reason is simple: gold traders and stock or bond investors expect further guidance on the Fed’s schedule, ”wrote Carlo Alberto De Casa, market analyst at Kinesis, in a research note on Monday.
Read: Investors are waiting for taper notices as the Fed postpones Jackson Hole online due to the delta variant
“Any subdued indication could help gold continue its recent recovery, while an accelerated start of the tapering process could be seen as a negative catalyst for gold bars,” the analyst wrote.
A weaker dollar helped lift gold, as measured by the ICE US Dollar Index DXY, -0.26%,
a measure of the currency against a basket of half a dozen rivals. The dollar index lost 0.2%.
A weaker dollar can make currency-valued assets like gold appear more attractive to overseas buyers.
Meanwhile, silver traded 37 cents, or 1.6%, higher at $ 23.48 an ounce for the September SIU21 delivery, +1.72%, after a 2.8% weekly decline on Friday.