Gold prices are rising: what’s behind the trend
16 June 15:38
Gold prices are rising on Tuesday, June 16: a preliminary peace agreement between Washington and Tehran has dampened expectations of a rate hike in the U.S. This is reported by "Komersant Ukrainian", citing Reuters.
Investors are awaiting details of the agreement and the outcome of the Fed meeting. The spot price of gold rose 0.87% to $4,343.29 per troy ounce by 1:30 p.m. Kyiv time.
“News of the peace deal pushed oil prices lower, and the worst inflation fears appear to be easing at this stage,” said Ricardo Evangelista of ActivTrades. “Investors are also scaling back their expectations for interest rate hikes by central banks, and this is having a positive impact on the gold market.”
According to the CME’s FedWatch tool, following the peace deal, markets have reduced the probability of a Fed rate hike in December to 56% from around 70%. Attention is now shifting to a series of central bank meetings this week, including the Fed on Wednesday—the first under new Chair Kevin Warsh.
“Investors will be closely watching signals from the FOMC for hints of a shift toward more dovish rhetoric. This could create additional upside potential for gold prices,” Evangelista said.
Palladium rose 0.58% to $1,356.17 per ounce, while silver gained 0.58% to $70.42 per ounce. The price of platinum rose by 1.75% to $1,798.16.
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