The eurowhich contributed to the rise in goldrose against the dollar before paring its gains. The European Central Bank raised interest rates more than expectedhighlighting how fears of high inflation have trumped growth considerations despite the impact of the war in Ukraine on the eurozone economy.
The geopolitical risks around Ukraine, the rising energy prices and massive amounts of debt are driving buying interest in goldsaid Daniel Pavilonis, senior market strategist at RJO Futures.
The dollar fell making gold more attractive to buyers with other currencies.
It is also expected that the US Federal Reserve raises rates by 75 basis points at its monetary policy meeting Of the next week.
Nail higher rates increase the opportunity cost of holding goldwhich does not pay interest, while bullion is also considered a hedge against inflation.
Among other precious metals, the silver went up a 0.1% a u$s18.69 per ounce, platinum gained a 13.1% a $859.70while palladium added a16.9% a $1,878.50.
Source: Ambito
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