Gold up on lower dollar, economic problems enhance its luster

Gold prices rose today, Thursday, supported by the weakness of the dollar and economic concerns, while investors seek more clarity about the monetary policy path of the Federal Reserve (the US central bank).

By 0131 GMT, gold in instant transactions rose 0.2 percent to $ 2032.58 an ounce. US gold futures also rose 0.2 percent to $2,041.80.

According to “Reuters”, the dollar index fell 0.1 percent, making the yellow metal priced in the US currency accessible to buyers abroad.

Gold prices initially rose on Wednesday after the release of US inflation data, before turning lower as a result of profit taking.

The annual increase in consumer prices in the United States slowed to less than five percent in April for the first time in two years, which could be a reason for the US central bank to temporarily stop raising interest rates next month.

Low interest rates enhance the attractiveness of gold, which does not yield a return

Meanwhile, US President Joe Biden ramped up pressure on Republican lawmakers on Wednesday to move quickly to raise the country’s $31.4 trillion debt ceiling or risk the world’s largest economy sliding into recession.

Matt Simpson, senior market analyst at City Index, said that the debt ceiling crisis appeared to support gold prices.

As for other precious metals, silver fell in spot transactions by 0.2 percent, to $ 25.37 an ounce, and platinum rose 0.2 percent to $ 1,115.92, while palladium lost 0.2 percent, recording $ 1,604.23.