Rise in gold prices following three-day decline
The precious metal showed a recovery alongside the weakening of the dollar, as markets focused on US inflation data.
The spot price of bullion posted an increase of nearly 1 percent on Wednesday following losses in previous sessions. The weakening dollar rate served as the main factor balancing the pressure created by developments in the Middle East.
Recovery in Gold Prices
Following a total decline of 2.6 percent over the previous three sessions, the spot price of bullion rose by up to 1 percent on Wednesday, approaching the 4,400 dollar threshold.
As of 13:48 Singapore time, spot gold reached a level of 4,396.37 dollars with a 0.9 percent increase.
Decline in the Value of the Dollar
Indicators measuring the global value of the US dollar recorded a retreat of approximately 0.4 percent this week.
The Bloomberg Dollar Spot Index continued its decline for the third trading session, losing 0.1 percent in value and making the precious metal more affordable.
Developments in the Middle East
The response of US forces to a missile attack attempt targeting a warship heightened concerns that conflicts in the region could escalate.
Incidents near Iran's oil export center and the destruction of crude oil tankers directly affected the markets.
Oil Prices and Inflation
While the barrel price of Brent crude approached the 100 dollar level, this situation re-triggered inflationary concerns and expectations.
Markets are awaiting critical inflation data to be announced ahead of the Fed's meeting scheduled for September 14-15.
Other Precious Metals
The upward trend in gold also reflected on other precious metals, creating a general upward tendency in the markets.
The ounce price of silver rose by 1.3 percent to 66.59 dollars, while platinum also increased by 1.3 percent and palladium recorded slight gains.