Gold Prices Are Rising Again: The Main Reasons
21 July 17:15
Gold rose more than 1% on Tuesday, July 21, as investors weighed reports of new mediation efforts aimed at de-escalating the conflict in the Middle East. These steps could put pressure on energy prices and ease concerns about high interest rates, which may be necessary in the event of a sustained acceleration in inflation. This is reported by "Komersant Ukrainian", citing Reuters.
The spot price of gold rose 1.26% to $4,055.99 per troy ounce.
“Gold is seeking a base price level following an epic rally in January of this year, when it reached an all-time high. It is believed that the worst—that is, the most intense phase of the sell-off—is already behind us,” said independent analyst Ross Norman.
“However, it’s not easy to identify an upward momentum for gold, and caution prevails in the market,” Norman added.
A senior Iranian official told Reuters that Tehran had received a proposal from mediators for a 10-day ceasefire, which could keep the previous ceasefire memorandum in effect. Meanwhile, Iran’s allies—the Yemeni Houthis—announced on Monday that they were launching a naval blockade of Saudi Arabia, which effectively opens a second front against the U.S.
Palladium rose 1.97% to $1,277.25 per ounce, while silver jumped 4.07% to $58.71 per ounce. The price of platinum rose by 2.08% to $1,627.21.
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