gold prices rose by 0.4% to $2002.72 per ounce. while US gold futures also increased by 0.4% to $2015.40. as the dollar weakened and investors awaited clarity on the upcoming interest rate hike by the US Federal Reserve. The 10% rise in gold prices since the beginning of the year is largely due to its role as a safe haven amidst cautious market sentiments regarding recession and financial instability.
gold prices rose
according to Han Tan, Chief Market Analyst at Exinity. However, requests for a new record high may be reduced until there is greater confidence in the Fed's rate cut later this year, added Tan. gold prices rose. The dollar's decline compared to its Monday growth. after factory activity in the state of New York increased in April. raised expectations of a central bank rate hike in May. putting pressure on gold and pushing it to a two-week low. The benchmark yield was close to three-week highs.
Gold is considered a hedge against inflation and economic uncertainty. but higher interest rates reduce the attractiveness of low-yielding bullion. gold prices rose. The CME FedWatch tool shows that markets estimate an 85.4% probability of a 25 basis point increase in May. As most recent US data indicates a slowdown in economic growth. and a weakening of the dollar in recent days. the background influence remains favorable for gold. notes StoneX analyst Ronan O'Connell.
gold prices rose. The main focus will now be on comments from Fed representatives this week before they enter a blackout period from April 22. ahead of the central bank's meeting on May 2-3. Markets will also be watching for reports from major US banks later in the day after other banks' brilliant results last week. Spot silver rose 0.1% to $25.13 an ounce, platinum rose 0.8% to $1056.81, and palladium rose 3.3% to $1610.66.