It should be remembered that the rise in interest rates usually has a negative impact on gold, which does not generate interest.
The rise in interest rates usually has a negative impact on gold, which does not generate interest.
Gold experiences a rise in its price this Friday after the disclosure of unfavorable economic data in Europe and a week in which the main central banks They chose to keep interest rates unchanged. However, the metal’s advance was cut short by the strength of the dollar.
The spot gold price increased by 0.3%reaching US$1,924.70 per ounce, after registering a losss for three consecutive sessions. On the other hand, gold futures in the US also improved by 0.3%, standing at US$1,945.40.
Craig Erlamof OANDA, said: “Now there is going to be a lot of emphasis on economic data, which are going to be a massive driver over the next six weekson the eve of the next meetings (of the central banks)”.
Gold: the impact of interest rates
This week, the central banks of the main global economies stated that they will maintain theinterest rates as high as necessary to control inflation. This stance propelled the dollar to six-month highs, while benchmark 10-year US Treasury bond yields remained near 16-year highs. thus limiting the advances of gold.
Although investors often purchase bullion as a hedge against economic uncertainty, The rise in interest rates usually has a negative impact on gold, that does not generate interest.
As for other precious metals, silver registers an increase of 1.2%reaching US$23.65 per ounce, heading towards its best week in the last four. The platinum also experienced an increase of 1.2%, reaching US$930.29, while the palladium improves 1.1%, standing at US$1,276.80.
Source: Ambito
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