Global gold price nears $4,100
Gold prices recovered slightly in the final session of the week after facing pressure earlier this week, at one point touching $4,094 an ounce.
At the close of the June 26 session, global gold prices spot rose $62 to $4,088 an ounce. During the session, the price peaked at $4,094.
The market moved up due to a weakening US dollar and fading expectations of a Federal Reserve (Fed) interest rate hike. The Dollar Index - which tracks the strength of the USD against a basket of six major currencies - is currently at 101.3 points, down from 101.7 in the previous session.
Global gold prices recover after losing the $4,000 per ounce mark. Chart: Kitco
CME Group's FedWatch Tool also shows that investors currently forecast a 59% probability of the US Federal Reserve (Fed) raising interest rates in September. This rate is down from previous forecasts.
According to data from the US Department of Commerce on June 25, the Personal Consumption Expenditures (PCE) index in May rose 4.1% year-on-year - the highest since April 2023. PCE is the Fed's preferred inflation gauge.
Jim Wyckoff - market analyst at American Gold Exchange, said gold prices are recovering slightly after facing selling pressure in the previous few sessions. This week, the price at one point fell to a 7-month low, while also recording its fourth consecutive weekly decline. High interest rates and tighter monetary policy reduce the appeal of non-yielding assets like gold.
TD Securities said gold usually moves inversely to oil prices and the USD. At the close of yesterday's session, global crude oil prices fell about 4% to $69-72 a barrel. However, the firm warned that if the energy market moves up, the precious metal could continue to face downward pressure in the coming months.
In the physical market, gold prices in India began to tick up for the first time in over a month, as the recent price drop stimulated buying. Meanwhile, demand in China, the world's top gold consumer, remained quiet.
Besides gold, prices of other precious metals also rose by about 2%. Silver is currently trading at $59 an ounce, while platinum and palladium closed the week at $1,615 and $1,188 respectively.