Gold Prices Will Continue to Rise: The Main Reasons
9 July 18:09
Gold prices are rising on Thursday, July 9, amid a decline in the dollar: investors remain cautious, closely monitoring developments in the Middle East and their potential impact on inflation and central banks’ monetary policy. This is reported by "Komersant Ukrainian", citing Reuters.
The spot price of gold rose 0.73% to $4,106.24 per troy ounce.
“Gold is trying to find a bottom today as the dollar’s rally weakens,” said Nikos Tsabouras of Tradu.com, a Jefferies subsidiary.
However, according to Tsabouras, maintaining higher interest rates for a longer period negatively affects non-interest-bearing assets such as gold, which could lead to more significant price declines. A few hours after Trump announced that the peace agreement with Iran had been terminated, the U.S. military reported that it had completed strikes on Iranian targets, which, according to the military, were necessary to ensure freedom of navigation in the critically important Strait of Hormuz.
Trump said on Thursday that Iran had approached him with a proposal to reach an agreement, which somewhat eased fears of further escalation of tensions in the Middle East. Concerns about high inflation intensified at the U.S. Federal Reserve’s June meeting, according to minutes released on Wednesday.
Traders are currently pricing in a 63% probability of a Fed rate hike in September, according to the CME FedWatch tool. HSBC lowered its forecast for the average gold price in 2026 to $4,560 from $4,864 per ounce and revised its 2027 forecast downward to $4,925 from $5,000.
HSBC expects demand for gold from central banks to rise in the second half of the year as part of a long-term diversification strategy.
Palladium rose 2.84% to $1,248.24 per ounce. Silver gained 1.51% to $59.18 per ounce. The price of platinum rose 2.55% to $1,618.54.
