Spot gold prices closed the 26/6 trading session up 62 USD, reaching 4,088 USD per ounce. During the session, the price briefly touched 4,094 USD.
The market rose due to a weaker US dollar and diminished expectations for the US Federal Reserve (Fed) to raise interest rates. The Dollar Index, which tracks the dollar's strength against a basket of six major currencies, currently stands at 101,3 points, down from 101,7 in the previous session.
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Global gold prices recovered after falling below the 4,000 USD per ounce mark. *Chart: Kitco*
The CME Group's FedWatch Tool also indicates that investors currently forecast a 59% probability of the US Federal Reserve (Fed) raising interest rates in September. This percentage is lower than previous forecasts.
According to data from the US Department of Commerce on 25/6, the personal consumption expenditure (PCE) index for May increased by 4,1% compared to last year, marking the highest rise since 4/2023. PCE is the Fed's preferred inflation gauge.
Jim Wyckoff, a market analyst at American Gold Exchange, believes gold prices are seeing a slight recovery after facing selling pressure in recent sessions. This week, prices at one point hit a 7-month low, also marking their fourth consecutive weekly decline. High interest rates and tighter monetary policy reduce the appeal of non-yielding assets like gold.
TD Securities noted that gold typically moves inversely to oil prices and the US dollar. Yesterday, global crude oil prices closed down about 4%, settling at 69-72 USD per barrel. However, the firm warned that if energy markets rise, the precious metal could continue to face downward price pressure in the coming months.
In the physical market, gold prices in India began to inch up for the first time in over a month, as recent price drops stimulated buying interest. Meanwhile, demand in China, the world's leading gold consumer, remained subdued.
Beyond gold, prices of other precious metals also rose by about 2%. Each ounce of silver currently trades at 59 USD, while platinum and palladium closed the week at 1,615 USD and 1,188 USD, respectively.
Ha Thu (according to Reuters, Kitco)
