Tuesday, 23 July 2024

Gold prices are close to a one-month high

Due to softer-than-expected U.S. inflation figures, gold prices increased somewhat on Friday, approaching one-month highs. After weaker-than-expected producer and consumer inflation statistics for June, the yellow metal recovered from the $1,900 per ounce support and was poised for its highest weekly gain since late April.

The prognosis for gold and other non-yielding assets improved as a result of investors reevaluating the pace of interest rate increases.

Gold prices

The dollar’s drop to 15-month lows was profitable for gold and other commodities priced in dollars. Gold futures increased 0.1% to $1,965.25 per ounce, while spot gold fluctuated slightly at $1,961.24 per ounce. This week, both securities were expected to increase by almost 2%.

The decline in U.S. inflation raised concerns among traders about the Fed’s motivation to raise interest rates twice more this year. While it is anticipated that the Fed will increase rates by 25 basis points later this month, markets are wagering that the increase will signal the end of the Fed’s current cycle of rate increases and that rates will stay at 5.5% until the following year.

  • Gold prices rise due to weaker inflation.
  • Dollar decline benefits gold, and commodities; futures and spot gold rise.
  • Chinese imports of red metal decline, causing copper prices to decline.

This situation is positive for gold prices, but additional increases in the price of the yellow metal are probably unlikely given that U.S. interest rates are at their highest level in more than 15 years.

Fed officials cautioned that the central bank will look for more definitive signs that inflation has subsided and that the expansion of the labor market and overall economic activity provide the Fed flexibility to continue raising interest rates.

Data revealed that Chinese imports of red metal decreased in June, which led to a decline in copper prices on Friday. The top copper importer in the world is contending with a sluggish economic recovery, which traders worry may hurt demand for copper throughout the world.

Despite dropping 0.4% to $3.9385 per pound, copper futures were still trading higher than 4% for the week. Additionally, markets are watching for additional stimulus programs in the second-largest economy in the world.

Related posts

Poisoned Watermelons Kill Russian Soldiers in Mariupol

At least 12 Russian soldiers died after eating poisoned watermelons in Mariupol. Approximately 30…
Read more

New Migrant Caravan Heads for US Amid Election Concerns

Hundreds of migrants from various countries have begun their journey from southern Mexico. The…
Read more

AI Fashion Show Turns World Leaders Into Trendsetters

Elon Musk‘s AI-generated video showcases global leaders and tech moguls in unconventional…
Read more
Become a Trendsetter

To get your breaking, trending, latest news immediately without diluting its truthfulness join with worldmagzine immediately.

Leave a Reply

Your email address will not be published. Required fields are marked *


A Chinese automaker has invested $600 million

Worth reading...