Gold price gains rise 1% due to dollar weakness

Monday, May 06, 2024 - 19:56
Point Trader Group

Gold prices rose more than 1%, Monday, with the US dollar falling after weaker-than-expected US jobs data reinforced expectations of a possible cut in interest rates by the US Federal Reserve later this year.

Gold rose in instant transactions by 1.04% to $233.44 per ounce.

US gold futures for June delivery also rose by 1.13% to $2,334.70 per ounce.

In this context, commodities strategist at TD Securities, Daniel Ghaly, said: “The downside that we have witnessed over the past few weeks may have begun to lose momentum, which opens the door for gold prices to resume their upward path.”

Gold prices were supported by the ongoing tensions in the Middle East, as the Israeli military operation in Rafah added more uncertainty to the market.

Other precious metals also advanced, as silver rose in spot transactions by 2.4% to $27.19 per ounce, platinum gained about 0.6% to $960.95, and palladium increased by 3.6% to $979.95.

While gold is traditionally considered a hedge against inflation, lower interest rates reduce the opportunity cost of holding bullion and weigh on the dollar, in which gold is priced.

In addition, the US dollar fell slightly on Monday, after hovering near its lowest level in about a month on Friday, after the employment report.

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