Gold prices rose modestly in international trading as investors remained cautious ahead of next week’s U.S. Federal Reserve interest rate decision and assessed the impact of Middle East tensions on inflation and global financial markets.
As of 2:10 a.m. Bangladesh time on Saturday, spot gold was up 0.1% at $4,052.78 per ounce.
U.S. gold futures for August delivery gained 0.5%, settling at $4,070.80 per ounce.
Speaking to Reuters, precious metals trader Tai Wong said gold prices appear poised to recover, although risks remain if geopolitical conditions in the Middle East deteriorate further.
“Gold looks ready to resume its upward trend, while expectations that the Federal Reserve will leave interest rates unchanged next week could provide additional support,” Wong said.
Since the outbreak of the Iran conflict in late February, gold prices have fallen by nearly 23%. Investors have been concerned that war-related inflation could keep interest rates elevated for longer. While gold is widely viewed as a hedge against inflation, higher interest rates typically reduce the appeal of non-yielding assets such as bullion.
Other Precious Metals
- Silver: Up 0.8% to $58.11 per ounce.
- Platinum: Down 0.8% to $1,587.17 per ounce.
- Palladium: Down 1.4% to $1,239.20 per ounce.
Source: Original Article
