Gold prices rise 1% as inflation fears ease and the dollar declines

2 hours ago

2 minutes read

Gold prices rise 1% as inflation fears ease and the dollar declines

Gold prices rose by 1% today, Tuesday, with inflation fears receding after the decline in oil prices.

This came after US President Donald Trump’s statements that the war in the Middle East had… "Expires soon"while introducing a weak The US dollarand the decline in Treasury bond yields provided additional support for the precious metal.

Gold prices

rose Goldin spot transactions reached $5,189.24 an ounce by 08:44 GMT. Gold futures contracts in the United States for April delivery also rose by 1.9% to $5,199.70.

Ricardo Evangelista, an analyst at Active Trades, said that the recovery of Stocks also contributed to supporting gold, due to the decline in margin requirements in other markets, adding that the decline in the dollar and the decline in US Treasury bond yields represent two positive factors for the gold markets during today’s trading, according to Reuters.

Global stocks rose, while oil prices fell by more than 7% following Trump’s statements, which allayed concerns about long-term disruptions in global oil supplies.

On the other hand, the Iranian Revolutionary Guard Corps said that it would determine "End of war"confirming that Tehran will not allow the export "One liter of oil" From the region if American and Israeli attacks continue.

The war effectively disrupted shipping traffic in the Strait of Hormuz, through which about a fifth of global oil supplies pass, leading to the detention of oil tankers for more than a week and forcing producers to stop production as storage facilities became full, which pushed energy prices to rise.

The dollar fell by 0.6% to its lowest level in a week, making gold priced in the US currency less expensive for currency holders. Others.

And yields on standard 10-year US Treasury bonds fell, reducing the cost of holding non-yielding gold.

At the same time, investors expect the US Federal Reserve to keep interest rates unchanged at the end of its two-day meeting on March 18, and they also expect the first rate cut this year to begin in July, according to the CME Group’s Fed Watch tool.

Markets are awaiting the release of the consumer price index in the United States. US data for February on Wednesday, along with the Personal Consumption Expenditures (PCE) index on Friday, the Federal Reserve’s preferred measure of inflation.

As for other precious metals, spot silver rose 2.5% to $89.21 an ounce, the highest level in a week. Platinum also rose 1.9% to $2,224.06, while palladium rose 0.5% to $1,696.76.