China surprised markets by cutting major short- and long-term interest rates in July, its first such broad move in almost a year, signalling policymakers’ intent to strengthen economic growth.
Weakness in the dollar comes just days before an address by Fed Chair Jerome Powell at the Jackson Hole Symposium on Friday, where he is expected to offer more cues on a rate cut.
Spot prices hit a record high of $2,510.45 an ounce last week, with the yellow metal logging strong gains amid growing conviction that the Fed will begin cutting rates from September.
Selling pressure from concerns over token distributions by defunct crypto exchange Mt Gox also appeared to have cleared, while data on Monday showed crypto investment products saw some positive capital flows over the past week.
With the data calendar relatively light across major economies this week, all eyes are on Wednesday’s release of the Fed’s July meeting minutes and Chair Jerome Powell’s speech at Jackson Hole on Friday for clues on the outlook for U.S. rates.
