The price of gold continued its rise on Friday. At midday, the price for one troy ounce (around 31.1 grams) climbed to a peak of $2,400.67, a high. The raw material, which is considered a safe investment haven, was boosted by tensions in the Middle East, among other things. Silver was also trading at its highest level since February 2021.
The precious metal gold has risen sharply this year, dragging silver up with it. According to traders, central banks, including China’s, are increasingly buying gold. The increased geopolitical risks in the Middle East and Ukraine also provided support. In addition, investors were pricing in the possible scope of interest rate cuts by the Federal Reserve over the course of 2024, although still-high US inflation data recently clouded this outlook.
“The gold price rally only briefly ran out of steam again after US inflation data exceeded expectations,” commented Thu Lan Nguyen and Carsten Fritsch from Commerzbank. “Since only US data from the second series are due next week, it cannot be assumed that the precious metal will come under any greater pressure for the time being.”
Other metals such as platinum and palladium also rose despite the strong US dollar. A stronger U.S. currency is typically a headwind for dollar commodity prices because it can dampen interest from overseas buyers.
No significant economic recovery expected
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2024-04-13 09:40:14