Gold Gains Over 1% Amid Oil Drop
Gold prices rose by more than 1.3% during early trading due to a decline in oil prices after the halt of fighting in the Middle East. This development eased inflation fears and concerns over prolonged interest rate hikes. Spot gold reached $4,103.99 per ounce, and August futures rose to around $4,106. The weakening dollar and lower U.S. Treasury yields helped boost the attractiveness of gold, even though higher interest rates generally reduce its appeal as a safe haven. We expect the Federal Reserve to maintain existing interest rates, with an 80% chance of a rate hike in September. Other precious metals like silver and platinum also experienced noticeable gains.
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