Weakened Dollar, Divided Fed Send Gold Price Soaring
Gold's recent price movement is marked by contrasting signals, making its future direction uncertain. The metal rose 1.03% on Thursday to $4,168.70 per ounce, largely due to a weakening dollar.
The Fed's decision to keep interest rates unchanged, but with internal dissent among committee members, contributed to the price increase. Three out of twelve members voted for an interest rate hike, the most pronounced internal disagreement in decades.
Central bank buying data has been revised downward, with first-quarter purchases reduced from 244 tonnes to 57 tonnes. This represents a 76% decrease from the initial estimate. Despite this, total global gold demand rose 2% in the first half to 2,522 tonnes, valued at $380 billion.
Geopolitical tensions have also supported gold prices, with concerns about shipping safety through the Suez Canal contributing to safe-haven demand.