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Gold is near the highest level in two months, supported by interest rate cut hopes
Gold prices rose to their highest level in nearly two months, today, Monday, supported by hopes that the US Federal Council will reduce interest rates.
Gold rose in instant transactions by 0.4% to $2,421.25 per ounce.
US gold futures also increased 0.3% to $2,428.9
As for other precious metals, silver fell in spot transactions by 0.4% to $30.7 per ounce, platinum stabilized at $998, and palladium fell 2.1% to record $948.70.
Read also: How were metal prices affected by the slowdown in US inflation and increasing speculation about a rate cut?
The dollar rose thanks to hedging requests in the wake of the assassination attempt on former US President Donald Trump, which increased his chances of winning the elections scheduled for November.
A stronger dollar makes gold more expensive for buyers holding other currencies.
Federal Reserve Chairman Jerome Powell spoke on Monday, reiterating the Fed’s request to see more data on the decline in inflation, refusing to set promises to reduce interest rates. A few other officials will also make comments later in the week.
Data sets scheduled for release this week include US retail sales, industrial production for June, and weekly jobless claims.
According to the CME Group's Fed Watch service, markets expect 93% that the US Federal Reserve will cut interest rates in September. Gold is seen as a hedge against geopolitical turmoil, and the appeal of the non-yielding metal usually increases when interest rates are low.
