Gold Prices Soar as Weakening Dollar and Falling Oil Fuel Demand
Gold prices surged 2.4% on Thursday, September 17, as the US dollar weakened and oil prices fell. The strengthening of gold is attributed to a decline in oil prices to its lowest level in a week and a weakening of the US dollar index from its highest position in seven weeks.
According to Anadolu Agency, the price of gold in the spot market on Thursday was traded at $4,370 per ounce at 14.16 GMT. U.S. gold futures also rose 0.54% to $4,410 an ounce.
The strengthening of gold is not limited to itself; silver prices in the spot market rose more than 4.5% to $66 per ounce, while platinum and palladium also strengthened. Analysts assess that the decline in oil prices reduces pressure on the gold market due to their inverse relationship influenced by inflation.
Corrections after the sharp rise in yields on 10-year US government bonds supported gold prices. However, high inflation and interest rates are considered to limit the potential for an increase in the short term.