The price of the metal is likely to continue to rise in the coming weeks as concerns about the global economy continue to mount.
Gold upload this thursday august 24 for the fourth consecutive sessionreaching two week highsGiven the concern about the slowdown in the economic growth American and the expectations that the central banks will keep the interest rates elevated for longer.
Spot gold advances a 0.3%at $1,919.07 an ounce, reaching its highest level from August 10. Gold futures in the US are stable at US$1,947.40.
US economic data last week showed that business activity in the country slowed down in August, while inflation remained high. These data raised concerns about a possible recession in the north.
Gold: With the spotlight on Jackson Hole
Investors are also eagerly awaiting the speech to be given by the Chairman of the Federal Reserve, Jerome Powellon Friday at the annual symposium of jackson hole. Powell could indicate If the Fed is willing to raise interest rates more than expected to combat inflation.
higher rates raise the opportunity cost of holding gold, which does not produce interest. However, the precious metal is also considered an active haven in times of economic uncertainty.
“Recession concerns and higher rates are driving demand for gold,” said Xiao Fu, an analyst at Bank of China International.
In other precious metals, the silver spot yields 0.8%, at $24.12 an ounce; platinum falls 0.2%, to u$s928.18; and palladium also falls 0.8%, to $1,263.78.
Gold: to take into account
- The increase in the price of gold in recent weeks is due to a combination of factors, among which are:
- Concern over slowing US economic growth and the possibility of a recession.
- Expectations that central banks will keep interest rates high for longer.
- The volatility of the stock market, which has boosted the demand for safe-haven assets such as gold.
Source: Ambito
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