Chicago Fed President Austan Goolsbee stated on Friday that additional reports similar to April’s would provide him with comfort that the economy is not overheating. This may strengthen the case for monetary easing later this year.
Despite the ongoing inflation and uncertainty surrounding potential rate reductions by the US central bank, gold has risen approximately 12% this year. In recent developments, indications have emerged that the Middle East may be moving away from the possibility of a full-scale war. However, Israel has begun evacuating civilians from Rafah, which could be a sign of an impending attack on the Gazan city. Talks between Hamas and Israel in Cairo hit a snag over the weekend, with Hamas pushing for a permanent truce.
Spot gold prices rose by 0.8% to $2,319.75 per ounce in London at 10:46 a.m. The Bloomberg Dollar Spot Index remained relatively stable, while silver, palladium, and platinum also experienced gains in value. Historically, higher interest rates have had a negative impact on gold, as the precious metal does not generate interest.
