Gold Continues to Strengthen
Gold prices rose to around US$4,080 per troy ounce during Thursday's trading, extending the approximately 2% gain seen in the previous session. A weakening US dollar served as a key support for the precious metal.
The Federal Reserve maintained interest rates within the 3.50%–3.75% range. Fed Chair Kevin Warsh reiterated a commitment to lowering inflation but stopped short of providing certainty regarding the next rate hike.
Demand for safe-haven assets also rose after the US military struck several Iranian targets. The strikes followed an Iranian missile attack on American forces in Jordan, reigniting concerns over conflict and energy-driven inflation.
Consequently, gold retains the potential to strengthen as long as the dollar remains weak and geopolitical tensions stay high. However, the roughly 60% probability of a Fed rate hike in September could cap gains, as high interest rates diminish the appeal of gold, which does not generate a yield.
Source: Newsmaker.id