Gold futures hovered about their lowest price in two weeks on Monday as the U.S. dollar lost some of its luster, according to Reuters.
Investor demand for the yellowish metal in the U.S. was curtailed by questions about interest rates in the nation. Bullion is coming off 1 percent losses from last week as questions continue swirling about what, if any, measures the U.S. Federal Reserve will deploy to spur the economy.
"The main thing that says to me is when inflation is poor, it encourages China to cut rates and stimulate the economy and I see that as good news for risk appetite," analyst Daniel Smith with Standard Chartered told the news source. "Gold carries the idea that it's a safe-haven, but in reality when everything else moves up, when liquidity improves, it tends to lift everything at the same time."
At 10:15 a.m. on Monday, gold futures climbed 0.56 percent, an $8.90 lift to $1,587.80 per troy ounce.
Bloomberg reports banks and investment houses on Wall Street are leery of a slowing U.S. economy and the increasing likelihood of financial turmoil in the world economy.
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