Gold prices rose on Tuesday, posting their biggest daily gain in a month.amid falling bond yields and as investors awaited clues on the path of interest rates at the US Federal Reserve’s policy meeting.
Spot gold was up 1.8% at $2,017.33 an ounce, a peak since April 14, while US gold futures were up 1.7% at $2,026.70. .
The two-day meeting of the Fed’s Federal Open Market Committee ends on Wednesday and the market expects the US central bank to decide to raise rates by 25 basis points.
Although gold is considered a hedge against economic uncertainties, the rise in rates harms the demand for this asset, which does not accrue interest.
“Banking concerns are back…the risk that the Fed is possibly considering a June rate hike is really going away.” said Edward Moya, OANDA’s senior market analyst.
Shares of US regional lenders extended their declines, while Treasury yields fell as the collapse of the First Republic Bank continued to spread fears through the markets.
Regulators seized First Republic Bank and sold its assets to JPMorgan Chase & Co on Monday in a deal to resolve the biggest US bank failure since the 2008 financial crisis.
In other precious metals, spot silver was up 1.6% at $25.38 an ounce; palladium fell 0.8% to $1,439.58; and platinum rose 1.1% to $1,060.84.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
