Gold prices climbed on Thursday, supported by escalating geopolitical tensions in the Middle East and a weaker U.S. dollar. Meanwhile, softer-than-expected U.S. inflation data boosted investor hopes for interest rate cuts by the Federal Reserve.
اضافة اعلان
Spot gold rose by 0.6% to $3,373.09 per ounce as of 05:52 GMT, while U.S. gold futures surged 1.5% to $3,393.80.
The U.S. Dollar Index (.DXY) fell to its lowest level in nearly two months, making dollar-priced gold more attractive to investors holding other currencies.
Kelvin Wong, Chief Market Analyst for Asia-Pacific at OANDA, said, “The weakness in the dollar is a strong catalyst for gold’s upward movement. Additionally, breaking through the resistance level at $3,346 triggered technical buying that reinforced the bullish trend.”
Rising geopolitical risks have also fueled demand for safe-haven assets. On Wednesday, U.S. President Donald Trump announced the relocation of some American personnel from the Middle East due to heightened security threats amid escalating tensions with Iran.
On the economic front, U.S. inflation data for May came in below expectations, driven by a decline in gasoline prices. However, concerns remain that inflation could accelerate in the future due to tariffs on imports. The inflation data prompted Trump to renew his calls for a substantial interest rate cut.
Wong added, “We could see quicker action from the Federal Reserve given the consumer price index data, which currently doesn’t ring any major alarm bells.”
Traders are now pricing in a 50 basis point interest rate cut by the end of the year. Investors are also awaiting the release of the U.S. Producer Price Index at 12:30 GMT for further clues on the potential rate cut trajectory.
In related news, Trump announced Wednesday that Washington and Beijing have reached a framework to revive a fragile truce in the U.S.–China trade war. This could prevent further tariff hikes. He also mentioned the possibility of extending the July 8 negotiation deadline with other countries before higher U.S. tariffs take effect.
As for other precious metals:
Silver rose 0.4% in spot trading to $36.38 per ounce.
Platinum gained 1.2% to $1,271.15, remaining close to its highest level in over four years.
Palladium fell 1.1% to $1,068.19.
— Reuters
