Gold Retakes $1,100 as Dollar Slides

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.

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam