Gold prices are at a 14-month high, and awaits cues from US Fed reserve meeting
- Gold prices climbed up above $1,350 an ounce and reached 14- month-high
- Investors are eyeing the outcome of the Federal Reserve meeting as it is expected to raise the prices of precious metals including gold.
However, the prices remained steady after hitting these levels as investors await a US Federal Reserve meeting scheduled for next week. Investors are closely watching the outcome of the meeting as it is expected to have an effect on precious metals like gold.
The Fed is expected to raise benchmark interest rates, and
Geopolitical tensions across the globe are one of the major reasons for this uptick in gold prices, and other commodities. The ongoing trade war between the US and China escalated after it warned China of fresh consequences if the latter failed to show up for next trade dialogue. This has altered the global trade balance, making future weary.
Added to that, problems in the Middle East became a major contributor to this price rise, after attack on two oil tankers last week, twice in a month. Prices of crude oil too jumped as much as 4.5% on Thursday after the tankers were attacked near Iran and the Strait of Hormuz.
The tensions between US and Mexico due to the border dispute too escalated. This was after US President Donald Trump said that if no agreement is reached to solve the immigrant problem, it will impose 5% tariffs on all Mexican imports, starting Monday.
The prices of Gold have been volatile in the last six months. The prices were oscillating between $1,230 and $1,300 from December to April, after a slump in May.