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Gold rises for second day as oil drop cools inflation and rate fears
Gold traded around 4,103 per troy ounce in Asian hours Monday, supported by a sharp fall in oil prices and renewed focus on upcoming central bank and inflation data.
Gold prices rose for a second straight session, trading near 4,103 per troy ounce during Asian hours on Monday, as investors rotated toward the metal amid easing fears about inflation and additional interest-rate hikes. FXStreet said the move followed a sharp drop in oil prices that helped cool the market’s rate outlook.
The report linked the tone in gold to a reprieve in the US Iran standoff, noting a weekend pause in military hostilities after the US suspended a two-week bombing campaign late Friday. It said Tehran held back retaliatory strikes against Washington’s Middle Eastern allies for a second consecutive night, with the potential for negotiations also cited.
Attention is now shifting to a heavy calendar of economic catalysts that could drive volatility, including multiple central bank meetings by the Federal Reserve, the Bank of England, and the Bank of Japan. FXStreet highlighted key data such as US GDP, US core PCE inflation, and CPI releases from the Eurozone and Australia.
FXStreet also reiterated gold’s role as a safe haven and an inflation hedge, with central banks described as the largest holders. The outlet cited World Gold Council data saying central banks added 1,136 tonnes of gold worth about $70 billion to reserves in 2022, the highest yearly purchase since records began.
Latest closeGold $4,055.70 ▲0.2%