Gold Prices Rise on Global Markets: Key Factors
24 July 17:11
Gold is edging higher on Friday, July 24, recouping some of the losses from the previous session amid a slight decline in oil prices. Meanwhile, investors are monitoring developments in the Middle East for clues regarding inflation risks and the outlook for U.S. interest rates. This is reported by "Komersant Ukrainian", citing Reuters.
The spot price of gold rose 0.32% to $4,060.24 per troy ounce.
“Gold shifted from a decline at the start of the session to a slight gain thanks to lower oil prices, which ease pressure on the Fed regarding rate adjustments,” saidGiovanni Staunovo of UBS.
“We continue to expect that the Federal Reserve will not change interest rates next week, and this should support gold in the coming months,” he added.
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The precious metal has come under pressure due to high oil prices amid supply disruptions from the Persian Gulf, as they reinforce expectations of a longer period of high Fed rates—which typically reduces the appeal of the precious metal, which does not generate interest income.
According to the CME’s FedWatch tool, money markets are currently pricing in a roughly 78 percent probability of a Fed rate hike in September.
The day before, the ECB, as expected, kept borrowing rates unchanged but left the door open for a rate hike in September.
Palladium fell 0.12% to $1,255.37 per ounce, while silver prices jumped 1.43% to $58.5 per ounce. The price of platinum rose 0.15% to $1,602.69.
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