Gold prices rose more than 2 percent, supported by a weaker US dollar and easing concerns over rising global interest rates. The rebound follows recent volatility in the commodities market driven by geopolitical tensions and shifting monetary policy expectations.
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Spot gold climbed to around $4,570 per ounce, while US gold futures also recorded strong gains. The softer dollar made gold more affordable for investors holding other currencies, increasing demand for the precious metal.
A decline in oil prices further supported gold, as it reduced fears of persistent inflation and aggressive interest rate hikes. Lower oil prices ease cost pressures across economies, which can influence central banks to adopt a less restrictive monetary stance.
Market sentiment was also influenced by signs of potential de-escalation in geopolitical tensions, particularly in the Middle East. Improved global outlooks tend to stabilise markets, while gold continues to attract investors as a safe-haven asset during periods of uncertainty.
Analysts note that gold remains highly sensitive to movements in the US dollar, interest rate expectations and global developments. The recent rally highlights the metal’s continued role as a hedge, especially when pressure from a strong dollar begins to ease.
Other precious metals also moved higher, with silver, platinum and palladium posting gains alongside gold. While short-term fluctuations may persist, market experts believe gold prices are likely to remain supported unless there is a sharp increase in real interest rates.
