Gold Prices Are Rising Again: What’s Behind the Trend
12 August 15:11
Gold prices are rising on Wednesday, August 12, as expectations of a tightening of the Fed’s monetary policy in September have eased. Markets are focusing on key U.S. inflation data, which could influence interest rate forecasts. This is reported by "Komersant Ukrainian", citing Reuters.
The spot price of gold rose 0.86% to $4,404.39 per troy ounce. The precious metal hit a 10-week high the previous day but then encountered technical resistance around the $4,387 level—the 100-day moving average—and closed lower for the second time in August.
“The main driver for gold is the easing of expectations for Fed rate hikes,” said Calvin Wong of OANDA. “From a technical standpoint, late last week we began to see a bullish breakout above the $4,200 level, which also created a positive feedback loop for the upward momentum.”
On Friday, the precious metal posted its biggest weekly gain since January after weaker-than-expected jobs data prompted traders to scale back bets on higher U.S. borrowing costs.
U.S. consumer price data will be released at 3:30 p.m. Kyiv time. Meanwhile, oil prices continued to rise—the U.S. and the Iran-backed Houthis in Yemen reported on Tuesday that they had struck ships, while prospects for an end to the war with Iran dimmed: Tehran stated that the Strait of Hormuz would remain closed.
Silver rose 2.3% to $66.16 per ounce, but is trading below the high reached the previous day, which was the highest since June 22. Palladium rose 0.84% to $1,371.79 per ounce. The price of platinum increased by 0.63% to $1,755.17.
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