Gold Prices Surge as Dollar Weakens, Fed Rate Hike Unlikely
International gold markets opened higher on Monday as the U.S. dollar slipped and traders bet that the Federal Reserve will keep its benchmark interest rate unchanged at its upcoming meeting. The precious metal gained about 0.6 percent in spot trading, pushing the price per ounce above the $4,000 threshold for the first time in several weeks. A softer greenback makes dollar‑denominated bullion cheaper for holders of other currencies, spurring demand from both institutional investors and retail buyers seeking a hedge against inflation. Analysts note that the market’s focus has shifted from aggressive tightening to a potential pause, with recent economic data suggesting easing price pressures. Consequently, safe‑haven appeal has strengthened, and exchange‑traded funds tracking gold have recorded inflows. The rally may extend if upcoming U.S. employment and inflation reports reinforce the view that the Fed’s tightening cycle is nearing its end.
Key Highlights
- Spot gold up 0.6% to above $4,000 per ounce
- U.S. dollar index declines, boosting bullion demand
- Market expects Fed to hold rates at next meeting
- Safe‑haven inflows into gold‑backed ETFs increase
Source: NTV BD
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