Gold prices rise as Middle East tensions continue

Gold prices rise as Middle East tensions continue: Gold prices rose on Thursday,
supported by a weak dollar and escalating tensions in the Middle East,
while investors await the release of more US economic data that may provide
clues about the Federal Reserve’s steps on interest rates.

 

Content

US Federal Reserve

Markets

Gold rise

 

US Federal Reserve members have no certainty when they will first cut interest rates

The monetary policy minutes issued during transactions on Wednesday, February 21,
clarified the opinions of members of the US Federal Council,
as the statement indicated that the recent figures presented by the US economy
do not put them in a position of certainty to reduce interest rates on a specific date,
indicating the necessity of waiting for a further strong decline in inflation rates around the 2% target.
It was also noted that unemployment is still low and consumer prices are showing positive and improving,
which puts them in fear of an early interest rate cut to avoid potentially serious damage.
On the other hand, investors continue to bet on the possibility of a cut during the May meeting of this year.

 

Markets are looking forward to personal consumption expenditure data

During next week’s trading, we are looking forward to data
that the US Federal Reserve is looking at to assess the US inflation situation,
and according to it, the date for reducing US interest rates may be determined,
which traders are betting on for a reduction during next May.
Annual core personal consumption expenditures may have reached 2.9% in the previous reading,
indicating inflation’s response to the tightening program that The bank follows it.
Will inflation decline further so that the Fed can reduce it next May,
which may be priced negatively on the dollar and vice versa if it rises above 2.9%? 

We may witness more clear positivity in the dollar index at that time.

 

Gold rises due to continuing Middle East tensions

Gold prices rose on Thursday, supported by a weak dollar and escalating tensions in the Middle East,
while investors awaited the release of more US economic data that

may provide clues about the Federal Reserve’s steps on interest rates.

The dollar index continued to record losses for the fourth day in a row,
falling by 0.3%, which increased the attractiveness of the yellow metal
denominated in the US currency for buyers abroad.

The intensity of the conflict in the Middle East escalated after Israel escalated its attacks
on the city of Rafah in the southern Gaza Strip.

Regarding other precious metals, the price of platinum rose by 1.2%

in spot contracts to $893.45 per ounce, the price of palladium increased by 1.7% to $965.25,
while silver prices rose by 1% to $23.08 per ounce.