Gold saw a slight recovery, remaining below the $2,400 mark amidst worries over continuing high interest rates and a robust U.S. dollar. Despite the rebound, investors continue to turn towards riskier bets, pressurizing the precious metal. The U.S Federal Reserve’s potential interest rate hike further diminishes gold’s appeal as a safe asset. Future economic statistics and global geopolitical advancements will be under the keen observation of market watchers for clues on gold’s trajectory.
The yellow metal’s price went up by a negligible 0.6% to $2,374.31 per ounce as the U.S. dollar took a dive. However, the potential for elevated interest rates capped its growth pattern. Higher borrowing costs have made gold investments less appealing, thereby restricting its growth. Yet, in economic uncertainties, gold continues to be a stable investment.
Despite the profit-booking this week after reaching record highs, gold managed to demonstrate its resilience as a secure investment. Investors continued their inflow towards it amid global economic ambiguity.
Gold’s modest rally amid rising interest rates
But increased volatility has led to fluctuating gold prices. Yet, experts predict a bullish trend and price hikes in the near future.
The U.S. high-interest rates, along with inflation data, lead market traders to dismiss the possibility of Federal Reserve-implemented rate cuts this June. Recent data has shifted market expectations, bringing about a shift in speculative trading strategies.
Other performing metals included palladium, silver, and platinum witnessing a fall of 0.3%, a rise of 0.2%, and a dip of 0.1% respectively. Moreover, copper has remained stable at $4.30, while gold saw minor day-end losses of 0.1%.
The performance of industrial metals showed a positive trend. Copper rose by 0.4% to $9,591 per ton, and aluminum saw an increase of 0.5%. Nickel grew by 0.6% to $19,750 per ton, with zinc rising by 0.7%. Iron ore ended at a 1.2% increase, valued at $210 a ton. These upward trends are driven by the global economic revival and China’s continued demand, alongside anticipation of significant infrastructure spending and green energy initiatives in developed economies.
