Wednesday, 29 May 2024

Gold recovers as US dollar declines


اقرأ المزيد

Gold prices reversed course and rose today, Thursday, after the slight decline in the dollar helped reduce the appetite for risk fueled by the decline in concerns about the global banking system.

By 0738 GMT, spot gold rose 0.3 percent to $1,968.89 an ounce. And US gold futures settled at $ 1984.70.

According to Reuters, the dollar index fell 0.1 percent, making the precious metal cheaper for buyers holding other currencies.

“In the short term, profit-taking and easing fears of further infection among banks will lead to a continued decline in the price of gold towards $1920 an ounce,” said Michael Langford, director at Air Guide Corporate Consulting.

Gold rose above $ 2,000 after the sudden collapse of two US banks this month, but it has given up the gains since then as the authorities intervened with rescue measures, such as the UBS acquisition of the troubled Credit Suisse bank and the First Citizens Bankers purchase of collapsed Silicon Valley Bank.

However, analysts at ANZ said in a note that the yellow metal “has held up relatively well in the face of adverse conditions.”

Market participants are now awaiting Friday’s US PCE data, which is the Federal Reserve’s preferred inflation measure, in search of more clues on monetary policy.

The opportunity cost of holding gold, which does not yield a return, rises when interest rates are raised to curb inflation.

Among other precious metals, silver rose in spot trading 1.2 percent to $ 23.63 an ounce. Platinum rose 0.4 percent to $971.12, and palladium increased 0.8 percent to $1,450.86.