Gold Slightly Strengthens, What's Watching The Market?
Gold prices rose slightly on Thursday (6/27) morning, reaching close to $3,340 per ounce, as the US dollar weakened and geopolitical tensions in the Middle East eased. Investors were watching President Donald Trump's statement that the conflict between Israel and Iran had eased and that a meeting between US and Iranian officials would be held next week. Even so, Trump continued to warn that the potential for war remains.
Calmer geopolitical conditions have boosted demand for safe haven assets such as gold, especially amid pressure on the US dollar that has made the precious metal cheaper for global buyers. The Bloomberg Dollar Spot Index fell 0.3%, supporting gold prices, which rose 0.2% at 11:38 a.m. Singapore time. In addition, other precious metals also strengthened: palladium had jumped more than 5% and platinum approached its highest level in a decade.
On the monetary policy side, investors continue to await direction from the Federal Reserve. Chairman Jerome Powell said the Fed is still assessing the impact of tariffs on inflation, but if price pressures remain low, the door could open to a rate cut sooner rather than later. This provides additional support for gold, as low yields increase the appeal of non-yielding assets such as bullion.
Although gold’s strong rally earlier in the year has lost momentum, central bank buying and expectations of rate cuts have kept prices buoyant. Gold is currently about $160 shy of its record high set in April, and analysts are projecting further upside if economic or geopolitical conditions improve. Silver also rose 0.3% in today’s trade, adding to the uptrend in the precious metals market.
Source: (ayu-Newsmaker )
