Gold prices continue to rise in global markets
Tehran - BORNA - Spot gold rose 1.3 percent to $4,129.43 per ounce, after hitting its highest level since July 7 in early trading. US gold futures for August delivery rose 1.4 percent to $4,134.50 per ounce. Gold closed with more than one percent gains in the previous session.
The new wave of US military aggression against Iran has pushed oil prices higher and intensified inflationary concerns, strengthening expectations for interest rate hikes, which had caused gold to experience its sharpest weekly decline since early June last week.
Tim Waterer, senior market analyst at KCM Trade, said: "Buyers have been seeking opportunities following the recent price decline, while hopes for diplomatic progress between the US and Iran are also helping drive gold prices."
According to Reuters, economists in a Reuters survey predicted that the Federal Reserve will keep its key interest rate unchanged for the remainder of 2026. However, when asked about the likelihood of a rate hike this year, most economists described it as "high," contrary to the "low" probability in last month's survey. Higher interest rates increase the opportunity cost of holding the non-yielding asset.
Investors are now awaiting next week's US central bank meeting for signals on the interest rate outlook.
In other precious metals, silver rose 1.6 percent to $59.71 per ounce, after hitting its highest level since July 10 in early trading. Platinum rose 1.9 percent to $1,659.97 per ounce, and palladium rose 2.2 percent to $1,310.50 per ounce.
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