Gold Prices Are Rising: What’s Behind the Trend
5 August 15:11
Gold prices rose 2% on Wednesday, trading near a one-month high, as hopes for a peace deal between the U.S. and Iran somewhat eased inflation concerns. This was reported by "Komersant Ukrainian", citing Reuters.
Investors are awaiting the release of key U.S. labor statistics in search of clues regarding the future direction of the Fed’s monetary policy.
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The spot price of gold has so far risen 2% to $4,157.65 per troy ounce, having earlier touched its highest level since July 7.
U.S. President Donald Trump said his administration had “very good discussions” with Iran during negotiations that lasted all day Tuesday—which bolstered hopes for a swift resolution to the Middle East conflict.
“There are increasing signs of a (looming) ceasefire agreement in the Persian Gulf, which means U.S. Treasury yields are falling amid easing inflation fears, which is boosting the appeal of non-interest-bearing assets such as gold,” noted Jamie Dutta of Nemo.money.
Traders are now pricing in a 59% probability of a Fed rate hike in September, down from 67% a day earlier, according to the CME FedWatch Tool.
The markets are focused on the ADP report, which will be released at 3:30 p.m. Kyiv time on Wednesday, and the nonfarm payrolls data on Friday.
Palladium rose 1.39% to $1,372.25 per ounce, while silver gained 3.25% to $61.44 per ounce.
The price of platinum rose 0.9% to $1,750.1.
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