Gold was down on Monday morning in Asia, but remained near a one-week high. A sharp drop in U.S. consumer sentiment reduced concerns about early asset tapering by the U.S. Federal Reserve and gave the yellow metal a small boost.
Gold futures inched down 0.04% to $1,777.55 by 12:02 AM ET (4:02 AM GMT), after hitting its highest level since Aug. 6, or $1,780.82, earlier in the session.
Investors now await Fed Chairman Jerome Powell’s comments at a virtual town hall meeting with educators and students on Tuesday, as well as the minutes from the Fed’s last policy meeting which will be released a day later.
In Asia Pacific, the Reserve Bank of Australia and the Reserve Bank of New Zealand will release the minutes from the latest meeting and the latest policy decision on Tuesday and Wednesday respectively.
However, gold premiums in China and India, a fellow top consumer, rose to multi-month highs. Physical gold demand rose during the previous week, with consumers picking up bargains after prices fell across regions.
The geopolitical implications from the Afghan government’s collapse over the weekend are also on investors’ radars.
In other precious metals, silver edged down 0.2%, platinum fell 0.7% and palladium was down 0.4%.