2024-04-09 18:34:44
Gold prices rose on Tuesday to an unprecedented level, supported by strong purchases and escalating geopolitical risks, while investors awaited the minutes of the US Central Bank meeting and US inflation data in search of new indicators regarding the path of monetary policy.
Gold rose in spot transactions by 0.8 percent by 1336 GMT to $2,357.19 per ounce, after jumping to an unprecedented level at $2,365.09, and US gold futures contracts also increased 1.1 percent to $2,376.
The minutes of the Federal Reserve’s March policy meeting and US CPI data are scheduled to be released on Wednesday, and the bank kept interest rates unchanged at a range of 5.25-5.50 percent in March.
Gold is a hedge against inflation and geopolitical risks, but high interest rates reduce the attractiveness of holding the precious metal, which does not generate returns.
“Factors motivating the current rally include heightened geopolitical risks, regular purchases from central banks, and resilient demand for jewelry, bullion and currencies,” the World Gold Council said in a note.
CME Group data showed that the market expects a 53 percent chance of an interest rate cut in June.
As for other precious metals, silver rose in spot transactions 1.7 percent to $28.29 per ounce, its highest level since June 2021.
Platinum rose 3.0 percent to $986.75, and palladium increased 2.9 percent to $1,073.39.
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