Gold soars with lower dollar, investors await interest rate ‎signals ‎

Gold prices rose today, Thursday, supported by the weakness of the dollar, but the yellow metal hovered near the low levels it recorded in the previous session, while investors await indications from the Federal Reserve (the US Central Bank) after the Bank of Canada raised interest rates to the highest level in 22 years.

By 0307 GMT, spot gold rose 0.4 percent to $1946.47 an ounce, after falling 1 percent in the previous session. US gold futures rose 0.1 percent to $1,961.00.

According to “Reuters”, Ajay Kedia, director at Kedia Commodities in Mumbai, said that gold is supported by expectations that the Federal Reserve will keep interest rates unchanged next week, while gold prices are stuck in a range between 1930 and 1985 dollars, and may break through the upper range as soon as Issuance of a decision by the American Central Bank to that.

Economists polled by Reuters said the Federal Reserve will not raise interest rates at its scheduled meeting on June 13-14, for the first time in more than a year.

On Wednesday, the Bank of Canada raised its key overnight interest rate to a 22-year high of 4.75 percent, and markets and analysts immediately expected another increase next month to curb soaring inflation.

US Treasury Secretary Janet Yellen said that the US economy is strong in light of active consumer spending, but some areas are witnessing a slowdown, adding that she expects to continue making progress in reducing inflation during the next two years.

A report on US consumer price inflation for May, due on June 13 before the central bank meeting, will give investors greater clarity about the strength of the world’s largest economy.

High interest rates weaken the attractiveness of gold, which does not yield a return

As for other precious metals, silver rose in spot transactions 0.3 percent to $ 23.53 an ounce, platinum increased 0.2 percent to $ 1020.13, and palladium rose 0.4 percent to $ 1394.91.