Gold hits 9-week high on lower dollar and hopes to stop raising ‎interest rates

Gold prices rose today, Thursday, to the highest level in nine weeks, thanks to the weakness of the dollar and bets that the Federal Reserve (the US central bank) may soon stop the cycle of raising interest rates.

By 0325 GMT, spot gold rose 0.5 percent to $ 1987.18 an ounce, the highest level since mid-May. US gold futures rose 0.4 percent to $1,988.80

According to “Reuters,” Baden Moore, head of carbon and commodity strategy at the National Bank of Australia, said, “It is likely that we will reach the end of the Federal Reserve raising interest rates at the next meeting of the Federal Open Market Committee (on July 26).”

Low interest rates help gold because it reduces the opportunity cost of owning the yellow metal, which does not yield a return.

The dollar index fell 0.2 percent, near its lowest level in more than a year, making gold cheaper for holders of other currencies.

The US central bank is expected to raise interest rates by 25 basis points at its meeting next week, to keep them in the range of 5.25-5.5% in 2023, according to CME’s Fed Watch tool.

As for other precious metals, silver increased in spot transactions by 0.3 percent to $ 25.23 an ounce, and platinum rose 0.1 percent to $ 973.81, while palladium fell 0.2 percent to $ 1,305.54.