Gold Returns to Upward Trajectory; Green Light for Precious Metals in Global Markets
Following the halt in oil price gains in global markets, gold seized the opportunity to recover its price, rising 0.9% to reach $4,042.69 per ounce. Experts believe gold is forming a base around the $4,000 level to initiate a new upward trend.
The spot price of gold rose 0.9% to $4,042.69 per ounce. Gold futures for August delivery on the US market rose 0.8% to $4,047.40 per ounce.
Ilya Spivak, head of global macro at Tasty Live, said: “Gold appears to be trying to establish a base around this level ($4,000) and intends to restart its upward trajectory from that point.”
Oil prices declined in Tuesday trading. The new wave of US military aggression against Iran had pushed oil prices to their highest level in over a month during Monday trading.
According to a Reuters report, the Federal Reserve is expected to keep interest rates unchanged at next week’s meeting.
According to the CME FedWatch tool, traders are pricing in approximately a 64% probability of a US rate hike in September.
Higher interest rates increase the opportunity cost of holding this non-yielding asset.
In the other precious metals market, spot silver rose 2.2% to $57.67 per ounce. Platinum rose 0.8% to $1,607.20 per ounce, and palladium rose 0.8% to $1,263.73 per ounce.