CHICAGO, Feb. 27 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose Monday on uncertainty ahead of President Donald Trump' s address to Congress Tuesday helping to boost the metal' s appeal as a haven investment.
The most active gold contract for April delivery rose 0.5 U.S. dollars, or 0.04 percent, to settle at 1,258.80 dollars per ounce.
The precious metal was given support as traders are preparing for market volatility ahead of a speech by U.S. President Donald Trump before the U.S. Congress on Tuesday.
The U.S. Dollar Index fell by 0.15 percent to 101.11 as of 1910 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.
Gold was given further support as a report released by the U.S. Department of Commerce showed durable goods orders increasing by 1.8 percent during the month of January, which was exactly in line with investors' expectations.
Analysts note weakness in goods that exclude transportation, as strength in aircraft manufacturing artificially propped up the durable goods measure. The same analysts note a 0.4 decrease in core capital goods, which gave support to gold.
It is worth examining the chances for a Fed rate hike before the scheduled Trump speech on Tuesday, for reference later in the week. Investors believe the Fed may raise rates from 0.75 to 1.00 during the May FOMC meeting at the earliest.
According to the CME Group' s Fedwatch tool, the current implied probability of a hike from 0.50 to at least 0.75 is at 35 percent at the March meeting and 55 percent for the May meeting.
Investors are waiting for several key economic reports this week. The gross domestic product and international trade in goods reports are due Tuesday, personal income and outlays is due on Wednesday, weekly jobless claims is due on Thursday, and Friday will see several Fed officials giving speeches, including Fed Chair Janet Yellen.
Silver for May delivery rose 1.1 cents, or 0.06 percent, to close at 18.417 dollars per ounce. Platinum for April delivery added 10.2 dollars, or 0.99 percent, to close at 1,038.90 dollars per ounce.
