Gold prices rise in global markets

Gold prices rose significantly in the international market on Friday (July 3) as the possibility of an interest rate hike by the US central bank Federal Reserve decreased and at the same time it is heading for weekly gains.

Spot gold or spot gold prices rose 1.3 percent to $ 4,176.29 per ounce at 10:06 am international time, which is the highest since June 23. The price of this precious metal has risen more than 2 percent so far this week. On the other hand, the price of gold in the US gold futures contract for delivery in August is trading at $ 4,188.80 per ounce.

According to government data released on Thursday (July 2), only 57,000 jobs were created in the non-farm sector in the United States in June. However, a Reuters poll had predicted that this number would be at least 1,10,000. The slowdown in job growth has reduced the likelihood of the Federal Reserve raising interest rates in September.

According to the CME FedWatch tool, the probability of an interest rate hike in September has now dropped to 54 percent, down from 66 percent before the data was released. Generally, low interest rates make gold or non-profitable assets more attractive to investors.

After this disappointing employment data, the US dollar also suffered its biggest weekly decline since April. The dollar's decline has made it cheaper for buyers of other currencies to buy gold. Meanwhile, the World Gold Council said that central banks around the world added 41 metric tons of gold to their reserves in May.

Although some banks are selling gold to protect their currencies, market analysts believe that this huge demand from central banks will play a major role in maintaining gold prices in the international market in the long term. In addition, the prices of other precious metals such as silver, platinum and palladium are also rising this week.

Source: Reuters.