Gold prices rise 2% as the dollar declines and interest expectations decline
Gold prices rose by more than 2% during Wednesday’s trading, supported by a decline Goldin spot transactions increased by 2.2%, reaching $4,570.74 per ounce by 04:50 GMT, while gold futures for April delivery in the United States rose by 3.8% to $4,569.10.
This rise was supported by a decline in the dollar, which made gold denominated in the US currency less expensive for holders of other currencies.
Christopher said. Wong, market strategist at OCBC Bank, said that the decline in the strength of the dollar returned momentum to the demand for gold as a safe haven, noting that The precious metaldid not lose its appeal, but was temporarily affected by the strength of the US currency, according to Reuters.
He added that gold prices will remain sensitive in the near term to the expectations of the Federal Reserve’s monetary policy path, in addition to the dollar’s movements and geopolitical developments, pointing out that the downward waves may remain supported unless real yields rise significantly.
Oil Prices
Oil prices fell below $100 a barrel, which contributed In allaying inflationary fears, amid expectations of the possibility of reaching a ceasefire that would ease supply disruptions in the Middle East, one of the most prominent oil production regions in the world.
US President Donald Trump had stated that his country was making progress in its efforts to end the war with Iran, including obtaining an important concession from Tehran, while a source reported that Washington had submitted a settlement proposal that included 15 items.
High oil prices usually lead to increased inflationary pressures by raising transportation and manufacturing costs, although… Inflation supports gold as a hedging tool. High interest rates reduce the attractiveness of the metal, which does not generate a return.
Data showed "Feed Watch" A subsidiary of the CME Group, investors’ expectations for a rise in US interest rates by December fell to about 16%, compared to 25% last Friday.
It indicated "JP Morgan" Until gold prices declined by about 17% from pre-conflict levels, due to the strength of the dollar and risk reduction processes, it represents a tactical buying opportunity, confirming that the positive outlook for the metal is strengthened the longer the tensions last.
With regard to other metals, silver rose by 3.1% to $73.42 per ounce, while platinum rose by 1.8% to $1,969.64, and palladium increased by 1.2% to $1,457.07.
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Twitter
