Gold futures traded firm on Monday as markets factored in the overwhelming possibility of a pause by the Fed in the upcoming review.
The CME FedWatch tool currently shows a 99 percent probability for a pause, in the Fed’s decision to be announced on Wednesday.
Mild weakness in the Dollar which swayed the Dollar Index to the overnight negative territory also lifted prices of the yellow metal. The Dollar Index is currently at 105.28, having shed 0.04 percent from the previous close.
Gold prices also received support from safe haven demand attributed to growing uncertainty and fears of a U.S. government shutdown.
However, fears of the Fed keeping interest rates higher for longer weighed on sentiment for the non-interest-bearing yellow metal.
Gold Futures for December settlement gained 0.08 percent to trade at $1,947.85. The day’s trading range has been between $1,944.10 and $1,951.6.
Spot Gold added 0.15 percent to trade at $1,926.72 per troy ounce. The day’s trading range has been between $1,925.15 and $1,930.71.