The value of gold increased on Wednesday as the US dollar decreased. Investors are waiting for the minutes of the Federal Reserve's latest policy meeting and inflation data to get an idea about interest rates. The International Monetary Fund (IMF) recommended member countries to keep tightening monetary policies to fight inflation, but warned about possible financial system vulnerabilities. If inflation figures rise, the price of gold may drop, but weaker than expected price data could increase the expectation of rate cuts, which would benefit gold. The price of silver, platinum, and palladium also increased.
The price of gold went up because the US dollar weakened, making it more affordable for people using other currencies. However, gold's gains were limited by the fact that the benchmark US yields were close to their highest level in a week. In the Euro zone markets, two 25-basis point moves are already expected, but there is a debate among investors about whether there will be a third hike. The European Central Bank is currently focusing on reducing price pressures.
The price of gold went up because the US dollar weakened, making it more affordable for people using other currencies. However, gold's gains were limited by the fact that the benchmark US yields were close to their highest level in a week. In the Euro zone markets, two 25-basis point moves are already expected, but there is a debate among investors about whether there will be a third hike. The European Central Bank is currently focusing on reducing price pressures.