Gold prices rise in global markets after record drop

The gold market has rebounded after falling to its lowest level in six months. Investors are now looking to the US inflation report to understand what the US central bank Federal Reserve's next monetary policy might be. In the meantime, the price of the metal has increased slightly in the global market due to the rush to buy cheap gold.

Spot gold prices in the international market rose 0.5 percent to $4,095.64 per ounce at 11:58 am Bangladesh time on Thursday (June 11). Earlier in the day, the price fell to $4,022.09, which is the lowest since November 21. On the other hand, the US gold futures or forward market price for delivery in August fell 0.4 percent to $4,116.20 per ounce.

Matt Simpson, senior analyst at financial services firm StoneX, said that the way gold prices were falling towards $4,000, there was a natural possibility of a market turnaround. Just as traders who took advantage of the decline in prices are taking profits, buyers who were at a loss are also returning to the market.

He also said that even after the release of the Consumer Price Index (CPI) or consumer inflation report on Wednesday, the US dollar index could not strengthen much. Therefore, unless there is a major negative surprise in the Producer Price Index (PPI) or producer-level inflation data, a technical or temporary rise can be seen in the gold market very soon.

Along with gold, other precious metals markets also experienced positive winds today. Spot silver prices rose 0.4 percent to $63.95 per ounce. Platinum rose 0.4 percent to $1,671.09 and palladium jumped 2.9 percent to $1,248.45.

Source: Reuters