Gold prices rose on Monday as the dollar steadied, but gains are expected to be muted ahead of inflation data from the United States later this week that could mean U.S. interest rates rise faster than expected. Spot gold was up 0.2 percent at $1,318.54 an ounce at 1329 GMT. U.S. gold futures rose 0.4 percent to $1,320.70 an ounce.
Worries about inflation in the United States surfaced after data this month showed jobs growth surged and wages rose, bolstering expectations that the U.S. labour market would hit full employment this year.
U.S. inflation data for January is due on Wednesday and the U.S. Federal Reserve next meets on March 20-21.
"The story is and will be about U.S. monetary policy and dollar direction," Julius Baer analyst Carsten Menke said. "U.S. growth is more solid, wages are rising and the worry is the Fed will be forced into more rate hikes than currently expected."
The information contained above may have been prepared by independent third parties contracted by Nadex. In addition to the disclaimer below, the material on this page is for informational and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Please note, exchange fees may not be included in all examples provided. View the current Nadex fee schedule. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representations or warranties are given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk and any trading decisions that you make are solely your responsibility Trading on Nadex involves financial risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results. Nadex instruments include forex, stock indexes, commodity futures, and economic events.
Nadex binary options and spreads can be volatile and investors risk losing their investment on any given transaction. However, the limited-risk nature of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Nadex is subject to U.S. regulatory oversight by the CFTC.