Gold Holds, Oil Leads the Way!
Gold prices moved steadily higher on Wednesday (July 22nd), as market participants weighed the impact of rising oil prices on inflation and the Fed's interest rate direction. Spot gold was around US$4,080.79 per troy ounce, while the US dollar remained relatively stable after strengthening in the previous session.
Tensions between the United States and Iran remain a major concern after the two countries exchanged attacks for the tenth day. Although mediators continue to try to reopen negotiations, oil prices have risen again as supply risks in the Middle East have not abated.
Additional pressure also came from attacks on Russia's Black Sea coast, a key shipping point for most of Kazakhstan's oil. This situation has made the energy market increasingly sensitive to global supply disruptions.
Gold is currently showing signs of support around the psychological level of US$4,000 per troy ounce after weakening for two weeks. Dip buying has begun to emerge, while silver also rallied sharply, rising more than 4% on Tuesday.
As a result, gold remains in a direction-finding phase for the market. Central bank purchases could provide support, but concerns about rising interest rates continue to limit gains. Morgan Stanley estimates that gold could reach US$4,450 and silver US$65.40 per troy ounce in the fourth quarter if the Fed ultimately holds interest rates this year and cuts them again next year. (asd)*
Source: Newsmaker.id
