Gold futures stepped higher early Monday, building on the prior week’s sizable gain that came amid bets for a further delay in U.S. interest-rate hikes.
Last week, gold gained about 1.7% and scored its highest settlement since Aug. 21.
The yellow metal could rise to test a trend-line level of $1,183 set by its long-term downtrend, said Bill McNamara, a technical analyst at Charles Stanley, in a note on Monday. It’s “not inconceivable that the price could run up to that level at some point during the next couple of weeks,” he wrote.
Gold doesn’t yield interest and competes more easily against assets that do, like Treasurys, when rates are pinned near zero. Investors have interpreted Federal Reserve minutes that were released on Thursday as providing further proof that U.S. interest rates may remain on hold for the rest of 2015.
was lower early Monday, helping to give gold a lift. A stronger greenback can weigh on dollar-denominated commodities like gold because it makes them pricier for holders of other currencies.