Gold Rises Again Above US$4,000
Gold prices rebounded in Thursday's trading after US inflation data matched market expectations. This increase brought gold back above the psychological level of US$4,000 per troy ounce, after previously being under considerable pressure due to the strengthening US dollar and expectations of tighter Federal Reserve policy.
The spot gold price rose 0.3% to US$4,014.60 per troy ounce at 9:00 a.m. ET (13:00 GMT). Meanwhile, US gold futures rose 0.9% to US$4,095.22. This increase signaled a temporary recovery after gold briefly fell below US$4,000 on Wednesday, for the first time since November 2025.
Positive sentiment came from the Fed's preferred inflation data, the Personal Consumption Expenditures price index. Core PCE rose 0.3% month-on-month and 3.4% year-on-year in May, in line with market expectations. Meanwhile, the headline PCE rose 0.4% month-on-month and 4.1% year-on-year, slightly lower than the 0.5% monthly expectation.
The weakening US dollar also helped gold's movement. When the dollar weakens, dollar-denominated gold becomes more affordable for foreign buyers. However, gold's upside is still limited by expectations of high interest rates, as gold does not provide a return like bonds or other interest-bearing instruments.
Previously, gold was under significant pressure as the market began to shift its focus from demand for safe assets to the risk of higher interest rates and tighter financial conditions. ING analysts believe that gold's weakness indicates that investors are now paying more attention to the direction of the Fed's policy than to safe-haven factors.
In addition to interest rates, easing geopolitical tensions have also reduced gold's appeal as a safe-haven asset. Progress in peace efforts between the United States and Iran, along with falling oil prices, has reduced the risk premium that had previously supported gold. This has made investors more cautious in taking positions in the precious metal. In other metals markets, silver prices edged up 0.1% to US$57.50 per troy ounce after previously falling more than 6%. Platinum prices weakened 0.3% to US$1,581.60 per troy ounce, after falling 4.5% in Wednesday's trading. Meanwhile, the benchmark copper futures contract on the London Metal Exchange rose 1.7% to US$13,255.95 per ton, and US copper futures rose 1.6% to US$6.04 per pound. (gn)*
Source: Newsmaker.id
