Gold Falls and Dollar Rises Amid Rising Global Inflation Pressures
Gold prices fell today, Thursday, under pressure from the rising dollar, while the increase in oil prices renewed concerns about inflation and reduced hopes for interest rate cuts in the near term.
By 01:03 GMT, the price of gold in spot transactions recorded a decrease of 0.2% to reach $5165.73 per ounce, while U.S. gold futures for April delivery fell 0.2% to $5171.40.
Dollar Rise and Its Impact on Gold
The dollar rose by 0.2%, making dollar-denominated commodities, such as gold, more expensive for holders of other currencies, according to Reuters.
Investor Expectations and Other Metals
Target Investment Company confirmed that gold and silver are on an upward trend, advising that investments in precious metals should not exceed 35% of investment portfolios.
As for other precious metals, the price of silver in spot transactions stabilized at $85.82 per ounce, while the price of platinum rose by 0.3% to $2175.32, and palladium increased by 0.6% to $1646.17.
Rising Oil Prices and Inflation Concerns
Iran stated that the world should prepare for oil prices to rise to $200 per barrel after its forces attacked commercial ships yesterday, Wednesday.
For its part, the International Energy Agency recommended releasing massive strategic reserves to alleviate one of the worst oil shocks since the 1970s.
Oil prices surged at the beginning of trading, increasing inflation pressures, as supplies from the Gulf remain limited due to the U.S.-Israeli war on Iran.
Sources reported that Iran has planted about 12 mines in the Strait of Hormuz, complicating efforts to reopen the waterway.
The strait is a major route for global oil and liquefied natural gas shipments.
Fighting has effectively closed the strait, leaving tankers stranded for over a week and forcing producers to suspend production as storage capacity approaches maximum.
U.S. Economic Data
The U.S. Consumer Price Index rose by 0.3% in February, in line with expectations compared to a 0.2% increase in January.
The index has risen 2.4% since the beginning of the year until February, in line with expectations.
Investors are awaiting the release of the Personal Consumption Expenditures Index data for January tomorrow, Friday, after its delay.
