Gold Prices Are Rising on Global Markets: What’s Behind the Trend
27 July 14:39
Gold prices are rising on Monday, July 27: a lull in the exchange of strikes between the U.S. and Iran has triggered a drop in oil prices, easing fears of accelerating inflation and higher interest rates. Meanwhile, the Federal Reserve meeting is the focus of attention this week. This is reported by [Komersant], citing Reuters.
The spot price of gold rose 0.99% to $4,092.72 per troy ounce.
“Precious metals started the week on a positive note thanks to a lull in the Middle East conflict,” said Ross Norman of Metals Daily. “Oil prices fell sharply, while the dollar and U.S. Treasury yields declined.”
A senior Iranian official told Reuters on Sunday that Iran would halt its attacks if the United States did the same.
This came after Washington suspended its strikes: advisers informed U.S. President Donald Trump that the list of potential targets was running out and also expressed concern about the possible depletion of U.S. weapons stockpiles.
Oil prices fell by more than 6% on Monday on hopes for a diplomatic solution and de-escalation in the Middle East.
Investors are now awaiting the Fed’s decision on Wednesday. Money markets are currently pricing in a roughly 66% probability that rates will remain at their current level.
“Gold is cautiously sending positive signals: the market is keeping one eye on Iran and the other on the Fed. If Warsh signals that he does not support the two rate hikes currently priced into market expectations, this could provide gold with significant support,” Norman said.
Palladium rose 3.12% to $1,282.15 per ounce, while silver rose 1.83% to $59.23 per ounce. The price of platinum jumped 2.89% to $1,634.46.
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