The metal currently trades around $1250, its highest levels since March 23rd. Asian equities dropped in early trading which also added to the bid tone around metal. However, Asian indices quickly recovered losses but failed to weaken gold as dollar dropped 0.20% against basket of currencies.
Last week, gold prices inched higher on Friday to settle at a more than one-week peak as a broadly weaker U.S. dollar due to skepticism over the Federal Reserve’s ability to raise interest rates as much as it would like this year boosted the yellow metal.
Ahead in the day, the metal may continue to find buyers if comments from Us Treasury secretary Jack Lew and Fed’s William Dudley signal the Fed is unlikely to raise rates anytime soon.