Gold prices have risen to their highest level in a week on Thursday, supported by a slight decline in the dollar. Investors are analyzing the relatively balanced comments made by Federal Reserve Chair Jerome Powell following the widely anticipated interest rate hike. Spot gold increased by 0.3% to $1,977.13 per ounce after reaching its highest level since July 20 earlier. U.S. gold futures rose 0.4% to $1,978.70.
Brian Lan from Gold Silver Central in Singapore stated, "Gold prices may experience volatility due to the Fed's signal for another interest rate increase this year, while bullion may see a slight upward movement," noting that everything depends on upcoming data. It is worth mentioning that gold is highly sensitive to rising interest rates, as this increases the opportunity cost of holding non-yielding bullion.
Investors are awaiting the monetary policy decision from the European Central Bank later today, which is expected to raise interest rates for the ninth time, after which it will follow a "data-dependent" approach. For other precious metals, spot silver rose 0.5% to $25.04 per ounce, platinum increased by 0.7% to $967.97, and palladium rose 0.4% to $1,264.64.
