Gold prices rise amid Middle East tension and interest rate expectations
Spot gold surpassed $4,400 while gram gold is trading at 6,918 liras. The weakness in the US dollar and global central bank policies drove the precious metal's rise.
Gold prices started to rise under the influence of the decline in the US dollar and the re-escalation of tension in the Middle East. While spot gold climbed above 4,400 dollars, gram gold also gained value.
Reasons for the Rise in Markets
Gold prices started to rise again on Tuesday following the decline in the previous session.
Besides the decline in the US dollar, the increase in oil prices and central bank interest rate expectations played a role in the rise of the precious metal.
Central Banks and Interest Rate Expectations
Following strong employment data, the probability of the US Federal Reserve going for a 25 basis point interest rate hike next week is priced at approximately 60 percent.
The European Central Bank and the Bank of Japan are also expected to raise interest rates this month.
Geopolitical Risks and Inflation
The rise in inflation concerns due to high oil prices directly affects interest rate expectations in the markets.
Investors are closely monitoring the impact of oil prices, which have risen with the re-escalation of clashes between the US and Iran, on the Middle East.
Current Gold Prices and Levels
Spot gold started the day at 4,411 dollars, saw a low of 4,406 dollars and a high of 4,440 dollars during the day, and is currently trading at 4,438 dollars.
Gram gold started the day at 6,861 liras, saw a low of 6,859 liras and a high of 6,919 liras during the day, and is currently finding buyers at 6,918 liras.