Gold rises with the escalation of the Iran war… and the strength of the dollar limits gains
Gold prices rose today, Thursday, supported by increasing demand for safe havens in light of the rise in The warin the Middle East, while the rise of the US dollar and concerns related to the monetary policy of the US Federal Reserve limited the pace of gains.
Gold prices
rose Goldin spot transactions increased by 0.6% to $5,168.43 per ounce by 08:55 GMT, while gold futures contracts in the United States for April delivery rose by 0.9% to $5,179.20 per ounce.
The rise in the yellow metal came after Israel launched a wide wave of strikes on Tehran, on Thursday, targeting – according to its statements – infrastructure. belonging to the Iranian authorities, after the launch of Iranian missiles that prompted millions of Israelis to take shelter in shelters, according to Reuters.
Hammad Hussein, an economist specializing in climate and commodities at Capital Economics, said: The continuation of the conflict in the Middle East may support the demand for gold as a safe haven, but the risks of continuing high energy prices for a long period may keep interest rates high, which may limit the gains of the precious metal.
The rise of the dollar
On the other hand, the rise The US dollar declined by about 0.3% after it briefly declined from its highest levels in three months, in light of the continued turmoil in global markets as a result of the repercussions of the war, which kept investor morale in a cautious state.
Concerns about energy supplies contributed to pushing oil prices up, which increased inflationary fears globally.
Gold is traditionally seen as a hedge against inflation in the long term, but it also tends to perform better in a low interest rate environment due to Because it is an asset that does not generate a return.
In the context of monetary policy, US President Donald Trump announced, on Wednesday, the nomination of former Federal Reserve Governor Kevin Worsh to assume the presidency of the US Central Bank.
As a report indicated "The beige book" The US Federal Reserve issued a note that economic activity in the United States has witnessed slight growth in recent weeks, with prices continuing to rise and employment levels stable.
Markets expect the US central bank to keep interest rates unchanged at its next meeting on March 18, according to the tool "videowatch" belonging to the group "CME"
Investors are also awaiting the release of weekly unemployment claims data in the United States later today, in addition to the February jobs report scheduled for release on Friday, to obtain additional indicators regarding the path of monetary policy during the current year.
With regard to other precious metals, silver rose in spot transactions by 0.5% to $83.80 per ounce, and platinum rose by 1.1% to 2172.20. Dollars, while palladium fell by 0.7% to $1662.07 per ounce.
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