Dollar Weakens, Gold Strengthens Ahead of Fed Decision
Gold prices strengthened on Monday (July 27th) after the US dollar weakened. The US Dollar Index fell 0.3%, making gold cheaper for buyers using other currencies. At the time of writing, gold was trading at $4,093 an ounce.
Gold's rise was also supported by a sharp drop in oil prices after the United States and Iran halted attacks over the weekend. Oil prices fell more than 5% in early trading on Monday.
The United States halted attacks after conducting operations against Iran for 13 consecutive nights. Iran also halted retaliatory attacks against neighboring countries hosting US military bases.
The decline in oil prices helped ease concerns about inflation due to surging energy costs. However, investors are still awaiting the Federal Reserve's assessment of economic conditions following the latest market turmoil.
The Fed is expected to keep interest rates unchanged at its meeting on Wednesday. The market will be closely watching remarks by Fed Chairman Kevin Warsh for clues about the direction of interest rates and the risks of future inflation.
Other precious metals also strengthened, with silver rising 2% to US$59.37 per troy ounce and platinum gaining 1.6% to US$1,618.83. As long as the dollar and oil prices remain weak, gold has the potential to maintain its gains ahead of the Fed's decision. (asd)
Source: Newsmaker.id
