Gold futures traded higher in early deals of Monday supported by the safe haven bullion bets after inflation rate climb to a 4 decade high and all focus is now on this week’s Federal Reserve monetary policy meeting. The Central Bank is likely to take hawkish measures including interest rate hike to contain inflationary pressure in the economy. News of rate hikes are almost always negative for the yellow metal even as inflation supports the hedge appeal of the bullion. However, gold for the most active contract has posted a gain of 0.1% for the week.
Gold futures for February climbed higher by 0.2% to $1,787.70 an ounce on the Comex division of the New York Mercantile. While, spot gold was rose 0.2% to $1,786.51 per ounce.