By TradingView
Gold traded at 1846.49, recording a gain of $9.45 or 0.52%. at the time of writing.
By TradingView
Gold futures rose during US trading on Wednesday. On the New York Mercantile Exchange Comex, August gold futures are trading at $1.00 per troy ounce, posting a 0.23% gain.
Gold prices rose from a two-week low on Wednesday as investors looked to the safe metal amid fears of rising inflation, mainly due to rising fuel prices, although a stronger dollar and higher U.S. yields held back gains.
“Investors now are desperate for more safe havens than just treasuries and that is why you are seeing gold outperforming,” said Edward Moya, senior analyst with OANDA.
“Inflation cannot really drop if these energy costs are that elevated. So I think the risk of much more aggressive tightening globally could really fuel the gold trade,” Moya added.
Although the cost of storage is rising due to high interest rates, gold is still a hedge against inflation and a refuge in economic recessions.
Spot silver (XAG =) rose 1.5% to $21.85 an ounce, after slumping for two weeks.
Platinum (XPT) = added 3.3% to $996.50, earlier there was an increase of 4.4% to $1,0006.93 earlier, due to supply concerns from South Africa and Russia.
Palladium (XPD =) rose 0.3% to $2005.18.
Silver futures for July delivery on the COMEX exchange added 1.20%, about $21.95 per troy ounce.
July copper futures also rose 0.94%, trading at $4.34 per pound.
Futures on the USD index, which shows the ratio of the US dollar to a basket of six major currencies, rose 0.70% to trade at $102.48.
According to experts, gold is a good asset in tough times. In almost any recession, it shows growth. And protects against inflation. But income cannot bring. Therefore, gold mining stocks can be considered as an alternative to yellow metal. In this case, the rise in the price of gold will be beneficial as well as the profit for the issuer, having received which, he will pay dividends. Gold may soon update the peak of $1974 per ounce and try to gain a foothold above $2 thousand.
Above $1800 (a fall below may portend the development of a downward trend in metal) gold makes sense to keep in the portfolio as an stabilizing asset, analysts advise.
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