Gold Prices Are Rising Rapidly on Global Markets: The Main Reasons
22 July 15:16
On Wednesday, July 22, hit a two-week high thanks to technical buying and some demand for safe-haven assets—investors are monitoring developments in the Middle East and preparing for the Fed meeting scheduled for next week. This was reported by "Komersant Ukrainian", citing Reuters.
The spot price of gold rose 1.08% to $4,120.43 per troy ounce, reaching its highest level since July 7 during the session.
“Concerns that higher oil prices could fuel inflation and keep interest rates high are being offset by demand for safe-haven assetsand hopes that the current diplomatic efforts between the U.S. and Iran may ultimately lead to a de-escalation of the conflict and ease pressure on oil prices,” said Ricardo Evangelista of ActivTrades.
Although the current rally is likely to face downside risks due to volatility in energy prices, the $4,000-per-ounce level continues to provide strong technical support, he added.
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U.S. Secretary of State Marco Rubio said Wednesday that Washington remains open to negotiations to resolve the crisis surrounding Iran, but does not see Tehran as being willing to engage in serious dialogue.
Meanwhile, three tankers carrying Saudi oil bound for China and India changed course in the Red Sea on Tuesday following threats from Iran’s allies—the Yemeni Houthis—which pushed oil prices higher.
Meanwhile, the markets’ focus is shifting to the Fed meeting.
Economists believe the central bank will keep the key interest rate at its current level for the remainder of 2026, according to a Reuters poll. Markets are pricing in two rate hikes by the end of March 2027.
Palladium rose 1.42% to $1,300.16 per ounce, while silver gained 1.22% to $59.50 per ounce. The price of platinum rose 0.9% to $1,643.73.
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