Investing.com - Gold prices rose slightly in Asia on Monday with the market awaiting word on a possible deal for a Senate vote to end the US government shutdown that has weighed on the dollar and raised interest in greenback-denominated commodities such as the yellow metal.
Gold futures for February delivery rose 0.03% to $1,333.50 a troy ounce on the Comex division of the New York Mercantile Exchange.
The US government shutdown on Saturday extends into the new week with all but essential services curbed and many of the regularly schedule data releases possibly delayed if the failure to provide stopgap funding continues.
The Bank of Japan starts a two-day monetary policy meeting with the decision on Tuesday expected to be closely watched for any signs the aggressive easing stance could be dialed back this year. A tweak by the Bank of Japan to its bond buying program earlier this month sparked speculation about a pullback in its monetary stimulus scheme later this year.
Investors will be focused on the outcome of monetary policy meetings by the ECB and fourth quarter growth from both the U.S., if it is released during the shutdown, and the UK. Canadian inflation data will also be in focus after last week's rate hike by the country’s central bank.
The World Economic Forum in Davos and talks on the North American Free Trade Agreement will also be closely watched for developments.
Last week, gold prices rose on Friday as the dollar hovered near three year lows amid fears over the prospect of a U.S. government shutdown, but the precious metal still ended the week slightly lower.
The dollar has been pressured lower by the view that the global economic recovery will outpace U.S. growth and prompt other major central banks, including the European Central Bank to begin unwinding loose monetary policy at a faster pace.
A dollar-denominated commodity, gold becomes cheaper for overseas buyers when the U.S. currency weakens.