Country: Gold prices rose, supported by lower US Treasuries yields, although the prospects of the Federal Reserve raising interest rates and the strengthening of the dollar limited the gains.
By 12 GMT, gold in spot transactions rose 0.5% to $ 1727.09 an ounce, and prices fell to the lowest level in more than a year at $ 1680.25 yesterday, Thursday, before closing up by 1.3 percent.
Gold has risen 1.2 percent so far this week, and US gold futures have increased 0.8 percent to $1,727 an ounce.
“Returns have fallen which might support the yellow metal in the short term,” said Craig Erlam, analyst at Oanda Exchange.
“If we are moving towards accepting low growth rates or a recession, gold can take advantage of the current momentum because it may eliminate the need for the Fed to be as sharp as it is now,” Erlam added.
Investors are currently awaiting the Federal Reserve’s monetary policy meeting on July 26-27, when it is expected to raise interest rates by 75 basis points to control rising inflation.
The European Central Bank joined its global peers in combating rising inflation and raising interest rates by more than expected, even as the euro zone economy suffered from the impact of the Russia-Ukraine crisis.
Higher interest rates increase the opportunity cost of owning the precious metal, which does not generate fixed returns, and boost the dollar, which makes gold expensive for buyers abroad.
As for other precious metals, silver settled in spot transactions at $ 18.78 an ounce, while platinum increased by one percent to $ 880 and palladium rose 0.5 percent to $ 1902.18.
Source: snabusiness
