The dollar fell 1.1% in the world, doing that gold cheaper for foreign buyers. “Investors remain interested in the greenback, but the upward currency pressure has created a bit of a headwind for the US dollar,” said JB Mackenzie, managing director of futures and foreign exchange at Charles Schwab.
“While today’s hike is welcomed by gold holders, the reality that central banks, both in the US and Europe, are poised to raise interest rates in the coming months is likely to limit the rise. of the precious metal”Rupert Rowling, market analyst at Kinesis Money, said in a note.
Financial markets’ swift response to monetary policy tightening offers hope that other parts of the economy may adjust more quickly as well, Atlanta Federal Reserve President Raphael Bostic said on Monday.
Gold is considered a hedge against inflation and a safe haven in times of economic turmoil. However, it is very rate sensitive as it does not accrue interest.
In other precious metals, spot silver was up 0.2% at $21.79 an ounce; platinum was up 0.1% at $956.76; and palladium was up 1.3% at $1,988.44.
Russian firm Nornickel cut its estimate of the global palladium market deficit in 2022 to 100,000 troy ounces due to weaker demand from the auto industry amid the war in Ukraine and a slow recovery in the chip market.
More news about the Blue Dollar and the Dollar
Key moment for savers: Bet on inflation or start dollarizing?
Investments: how to hedge against the jump in inflation and the rise in rates?
Dollar: what will happen and what to invest in
Inflation and interest rates: how to plan your investments?
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
