Gold prices rebounded on Monday and jumped back above $1,100 an ounce after slipping below that key level for the first time in more than five years last week during a wider selloff in the commodity markets.
Gold was benefiting from haven demand as stocks mostly retreated worldwide, led by Chinese equities. The rally on Monday came as the dollar slid against most major currencies, ahead of a closely watched Federal Reserve meeting later in the week that could determine the trading action in currencies and commodities in coming weeks. The U.S. central bank is widely expected to keep interest rates at a record low at the meeting, but expectations are rising that a rate hike could come before New Years.
Those expectations have recently driven the greenback higher, and in turn added pressure on dollar-denominated commodities that get more expensive for other currency holders.