Gold market rally continues!
On Thursday, the price of gold rose by around 2%, trading at approximately $4,350 per ounce.
Gold continued its recovery toward the end of the week, regaining part of its previous losses. The precious metal was supported by the U.S. Federal Reserve’s interest rate decision, lower U.S. bond yields and falling oil prices.
On Thursday, gold prices rose by around 2%, trading at approximately $4,350 per ounce. This recovered most of the losses recorded over the previous three sessions. The decline in U.S. Treasury yields provided additional support for gold. Since gold does not generate interest income, it typically comes under pressure when bond yields rise.
Meanwhile, oil prices fell for a third consecutive day, strengthening expectations that lower energy costs could reduce their impact on inflation. This factor also supported demand for gold.
However, expectations surrounding the Federal Reserve’s future interest rate policy remain a risk for the precious metal. At 08:12 Singapore time, spot gold was up 0.2% at $4,351.96 per ounce. Silver rose 0.4% to $65.51.
Investors have increased their interest in gold in recent weeks, expecting its long-term upward trend to continue. During this period, gold-backed ETFs also continued to attract inflows despite price declines, keeping investor interest high.