Gold Soars on Weaker Dollar, Crude Oil Prices Tense Ahead of Geopolitical Risks
New Delhi [India], August 19 (ANI): Gold prices are expected to maintain their positive momentum due to a weaker US dollar and reduced expectations of a near-term interest rate hike in the United States. According to a Kotak Neo report, spot gold has extended its two-week rally, rising 0.5 percent intraday before paring gains to around $4,400 an ounce. Silver, on the other hand, outperformed, climbing 1.6 percent to $65.73 an ounce.
The dollar declined 0.2 percent, while a steeper Treasury yield curve fueled expectations that the Federal Reserve is unlikely to adopt an aggressively hawkish stance in the near term. Geopolitical tensions, including renewed attacks on the Strait of Hormuz and possible US measures against Iran, continued to support bullion.
On the other hand, benchmark crude oil prices remain moderately positive as 'The market is balancing escalating geopolitical risks against continued physical supply flows and concerns over demand,' noted Kotak. The report added that strong Gulf exports and weak demand could cap gains and eventually pull Brent towards $80/bbl.