Gold Hot! Markets Push Back and Forth Between Dovish Signals and US Economic Drama
Global gold prices strengthened on Friday (July 18th), trading at around $3,351.30 per ounce. This increase occurred despite solid US economic data. Investors are now closely monitoring the Federal Reserve's potential interest rate policy direction amid political pressure and a still-fragile global economic environment.
Recent data showed US jobless claims fell to their lowest level since mid-April, and retail sales rose in June. However, a statement from San Francisco Fed President Mary Daly, who stated that two interest rate cuts this year were still reasonable, prompted the market to reconsider the possibility of further monetary policy easing.
A slight weakening of the US dollar also helped support gold prices. The Bloomberg Dollar Index fell 0.2% on Friday afternoon in London. Silver prices also rose 0.5%, while platinum remained near its highest level in a decade. Palladium even touched its highest level in nearly two years.
Gold, which does not yield a yield, tends to be under pressure in a high interest rate environment. However, the prospect of an interest rate cut by the Fed, coupled with concerns about geopolitical tensions and President Donald Trump's tariff policy, has led investors to return to precious metals as a safe haven.
Despite moving within a relatively tight range in recent weeks, gold has recorded a gain of more than a quarter so far this year. Market participants are now awaiting the outcome of the Fed's meeting later this month to gain a clearer picture of the future direction of interest rates and its potential impact on the attractiveness of dollar-denominated assets like gold.
Source: (ayu-newsmaker)
