On Tuesday, gold prices rose slightly as investors assessed potential negotiations between the US and Iran, as well as conflicting signals regarding the future policy of the US Federal Reserve on interest rates.
The conflict in the Middle East has led to rising energy prices and heightened inflation concerns, which, according to Reuters, could prompt central banks to raise interest rates. While gold is considered an inflation hedge, rising interest rates typically put pressure on its price since the precious metal does not provide interest income.
Currently, traders estimate a 65% chance of a rate hike in September, after the Fed maintained its previous policy at its last monetary policy meeting.
Ajay Kedia, director of Kedia Commodities, believes that if expectations for a rate hike in September weaken, it will support further increases in gold prices.
Citi Bank, in its analytical report, noted that it expects stabilization or even a slight decrease in gold prices over the next month, but thereafter forecasts an increase to $4500 in the fourth quarter of this year and up to $5000 in the first half of next year.
According to Reuters, the spot price of silver rose by 1.2% to $58.89 per ounce, platinum increased by 0.9% to $1641.96, and palladium by 0.9% to $1275.83.
