Gold Pared Its Gains

Starting today’s report with an important quote “The Federal Reserve is close to hitting its targets for full employment and 2% inflation” Stanley Fischer, the vice-chairman of the Federal Reserve’s Board of Governors said on Sunday in comments that did not address when the U.S. Central Bank would next hike interest rates.

The Fed's No. 2 policymaker also said, “The Fed has been suggesting it could hike rates in 2016 since it tightened policy in December for the first time in nearly a decade.”

Fischer’s remarks come less than a week before Fed Chair Janet Yellen, who is expected to give guidance on the interest rate policy.

USD ended trading slightly higher last Friday and the U.S. dollar index rose by 40 pips to settle at 94.50.

Also on Friday, Gold fell by 1% to end a four-day rally. The yellow metal settled above $1,340 and could trade flat in anticipation of Janet Yellen's speech.

The Pound declined by 1% as Britain may officially begin the process of exit from the European Union by the end of the year. On Friday, GBP settled above $1.30 thanks to weak USD.

Oil prices rose by $10 amid speculations that the world's largest producers, including the Saudi Arabia-led, Russia and other OPEC members could agree a deal to freeze production next month. The U.S. crude rose by 25% Friday and could re-test the psychological barrier of $50 during the course of the week.

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