Platinum was up 0.5 percent at $1,011.49 and palladium gained 0.8 percent to $605.55.
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On the U.S. economic front, new orders for manufactured durable goods in March increased 1.8 billion dollars or 0.8 percent to 230.7 billion dollars, missing market consensus of a 1.6-percent gain, reported the U.S. Labor Department Tuesday.
US stock prices fell on Monday as weaker oil prices weighed on energy shares, with the S&P 500 .spx dipping 0.18 percent to 2,088, slipping further from a 4-1/2-month closing high of 2,102 hit last Wednesday. Since 2014, the euro has fallen about 20% against the dollar on the back of a stronger USA economy and the expectations of higher rates that strength has brought.
Precious metal investors are looking forward to the outcomes of the Fed and Bank of Japan’s meetings scheduled this week. Economists expect the Fed to deliver a rate hike in June, and follow up with another by year-end.
“It is pretty much a given that the FOMC won’t raise rates at this meeting, and may not raise rates until the end of the year”, said Kevin Giddis, head of fixed income capital markets at Raymond James in Memphis, Tennessee.
In other precious metals, silver rose $0.085 to $17.045/$17.065.
“Even dovish policy makers such as (Boston Fed President Eric) Rosengren are saying market expectations are too low”, said Nomura Securities fixed income strategist Tomoaki Shishido, in Tokyo.
World stocks were mixed, with Wall Street edging lower as investors assessed quarterly earnings and awaited the outcome of the Fed meeting.
Futures contracts, meanwhile, continue to show a lot of hot money heading gold’s way with the data for the week to 19 April showing net long or buy positions at their highest since February 2012.
“In our view, a near-term catalyst to drive gold higher is not obvious, but we think the metal remains well supported”. The weaker dollar and expectations that the global oil glut would ease lifted oil prices.
Emerging markets indexes rose along with Chinese stocks .CSI300 , while Japan’s Nikkei .N225 was lower on the day.
There is a change in USA monetary policy behind the trend.
Both remained off five-month highs hit last week.
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Any further softening of its interest rate intentions should help the gold price, though conversely a sign that a rate rise is coming soon may have the opposite effect.
