Gold prices are on the rise and remain close to their highest level in eight months, buoyed by dollar weakness and hopes of slowing the pace of US interest rate hikes.
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The instability of the dollar’s price supports the increase in the price of gold
Gold prices rallied on Tuesday and remained close to their highest level in eight months, buoyed by dollar weakness and hopes of slowing the pace of US interest rate hikes after the Federal President Reserve (Central Bank of the United States ) Jerome Powell did not provide further clarification on the way to raise US interest rates.
The price of gold in spot transactions rose 0.2% to $1875.01 an ounce (one ounce) by 18:42 GMT, after hitting its highest level since May 9 yesterday.
And US gold futures prices fell 0.1% at the close, to $1876.5 an ounce.
Although the dollar has rallied, it was close to its lowest level in seven months, which makes gold more attractive to holders of other currencies.
Powell did not comment on the Federal Reserve’s monetary policy during her speech at a conference in Sweden on central bank independence, but a member of the Council’s Board of Governors, Michelle Bowman, said the US central bank will have to increase interest rates to combat high inflation.
As for other precious metals, silver fell 0.3% to $23.56 an ounce, platinum fell 0.2% to $1076.91 an ounce, while palladium stood at $1775.49 an ounce.
