Spot Gold Rises 0.4% to $4,130 per Ounce Amid Fed Rate H expectativas and Oil Volatility
Spot gold rose 0.4% to $4,130.58 per ounce while remaining near multi-week lows as markets weighed rising oil prices, geopolitical tensions, and shifting U.S. interest rate expectations.
Spot gold rose 0.4% to $4,130.58 per ounce (approx. 12,722 NIS), yet remained near a seven-week low following a sharp drop to its lowest level since August 5. Meanwhile, U.S. gold futures fell 0.2% to $4,162.20 per ounce (approx. 12,820 NIS).
Precious Metals and Market Trends
Other precious metals traded lower as well. Silver dropped 0.9% to $60.42 per ounce (approx. 186.1 NIS), platinum lost 1.3% to trade at $1,697.71 per ounce (approx. 5,229 NIS), and palladium fell 0.8% to $1,205.27 per ounce (approx. 3,712 NIS).
Geopolitical developments and oil prices remain key background factors. U.S. and Iranian officials held separate talks with intermediaries as part of a month-long effort to end seven months of conflict. At the same time, oil prices rose for the second consecutive day amid persistent concerns over supply disruptions in the Middle East.
Inflation and Interest Rate Pressures
Higher energy prices can increase price pressures across the economy and reinforce the need for central banks to maintain high interest rates, impacting non-yielding assets like gold.
Rising oil prices also impact inflation and interest rate expectations. Markets are currently pricing in a higher probability of a U.S. interest rate hike, with FedWatch tools indicating a 72.5% chance of a Federal Reserve rate increase at the end of October, compared to just 57.6% a week ago.
Investors are now awaiting a series of key U.S. macroeconomic data releases, including consumer confidence figures and JOLTS job openings data, which are expected to provide further clues regarding future monetary policy.
