gold prices
Gold prices rose in Asian trading, Thursday, to the highest level in nine weeks, thanks to the weakness of the dollar and bets that the Federal Reserve (the US central bank) may soon stop the cycle of raising interest rates.
“It is likely that we will reach the end of the Fed’s rate hike at the next meeting of the Federal Open Market Committee (on July 26),” said Baden-Moore, head of carbon and commodity strategy at the National Bank of Australia.
Low interest rates help gold because they reduce the opportunity cost of holding non-yielding bullion.
The dollar index fell 0.2 percent, near its lowest level in more than a year, making gold cheaper for holders of other currencies.
The US central bank is expected to raise interest rates by 25 basis points at its meeting next week, to keep them in the range of 5.25-5.5 percent in 2023, according to CME’s Fed Watch tool.
Prices change
By 0325 GMT, gold in instant transactions rose 0.5 percent to $ 1987.18 an ounce, the highest level since mid-May. US gold futures rose 0.4 percent to $1,988.80.
As for other precious metals, silver increased in spot transactions by 0.3% to $25.23 an ounce, platinum rose 0.1% to $973.81, while palladium fell 0.2% to $1,305.54.
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