Gold is rising supported by geopolitical tensions and expectations of easing US monetary policy.
Gold markets witnessed a rise today, Thursday, June 12, driven by two main factors: escalating tensions in the Middle East, which boosted demand for safe havens, and weak U.S. inflation data that reinforced expectations of interest rate cuts.
In spot trading, the price of gold per ounce rose by 0.3% to reach $3,364.10 by 00:17 GMT, while U.S. gold futures jumped by 1.2% to $3,384.40. The decline in the dollar index by 0.1% contributed to this increase, reducing the purchasing cost for investors outside the United States.
This increase comes amidst geopolitical uncertainty following statements by U.S. President Donald Trump indicating the intention to evacuate American citizens from the region due to "increasing risks," prompting investors to turn to gold as a safe haven.
Economically, consumer price index data for May showed a modest growth of only 0.1%, lower than analysts' expectations of 0.2%. In this context, market experts expect the Federal Reserve to cut interest rates by up to 50 basis points by the end of this year.
Investors are now awaiting the release of the U.S. Producer Price Index data at 12:30 GMT, which may provide additional insights into the central bank's direction ahead of its important meeting on June 17 and 18.
As for other precious metals, silver rose by 0.3% to $36.32 per ounce, while platinum jumped by 0.8% to $1,265.32, maintaining levels close to its four-year high. Conversely, palladium fell by 1% to settle at $1,069.65 per ounce.
