Gold prices rose slightly after hitting their lowest level in more than two weeks in the previous session, against the dollar index declining by 0.1%.
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Gold prices rise against the decline in the price of the dollar
Gold prices rose slightly today, Thursday, after hitting their lowest level in more than two weeks in the previous session, at a time when investors focused on the possibility of central banks raising interest rates to contain inflationary pressures.
And the price of gold in instant transactions increased by 0.1%, to $ 1994.83 an ounce. US gold futures remained stable at $2006.30.
On the other hand, the dollar index declined by 0.1%, which makes gold less expensive for buyers than holders of other currencies.
“Although gold fell below $1,980 yesterday, investors were quick to seize the opportunity for a rapid decline, pushing spot prices once again beyond this key support level,” said Matt Simpson, a senior analyst at City Indexes.
Simpson indicated the readiness for US Federal Reserve members to continue their tightening with regard to monetary policy, during the period of silence that begins the day after tomorrow, Saturday, before the next meeting of the Federal Reserve.
For his part, John Williams, head of the US Federal Reserve Bank of New York, said yesterday, Wednesday, that inflation is still at problematic levels, and the bank will take measures to reduce it.
Council policies prohibit members of the Federal Open Market Committee concerned with setting policies and making decisions on interest rates, from speaking publicly or giving press interviews, starting from the Saturday before the committee meeting, until the Thursday following the meeting.
A Reuters poll showed that the Fed will raise interest rates by 25 basis points for the last time, in May, before halting the increase until the end of this year.
High interest rates usually weaken the attractiveness of gold, because they increase the opportunity cost of owning the non-returnable asset.
As for other precious metals, silver fell in spot transactions by 0.2%, to $25.21 an ounce, platinum decreased by 0.8%, to $1081.72, and palladium decreased by 0.6%, to $1607.14.
