Gold prices rise on temporary relief in the Middle East

The end of the US aggression against Iran has had a direct impact on the price of gold. According to Reuters, the price of the precious metal has fallen in the international market due to a temporary reduction in the conflict in the Middle East and a big drop in oil prices.

Spot gold prices rose 0.9 percent as of 10:30 am on Monday (July 27). The price of gold per ounce has reached $ 4,087.79. At the same time, US gold futures also rose 0.5 percent to $ 4,089.90.

According to analysts, inflationary pressures have eased somewhat as oil prices have fallen more than 4 percent. In addition, the weakening of the US dollar has made it relatively cheaper for buyers in other countries to buy gold, which has helped increase demand.

A senior Iranian official told Reuters that Iran will also stop attacking if the US does not attack. At the same time, the United States has also temporarily suspended its bombing campaign on the advice of President Donald Trump's advisers.

Now the market's attention is on the US Federal Reserve meeting to be held on July 28-29. It is expected that this time, interest rates will remain unchanged. However, market analysts still believe that the possibility of raising interest rates in September is 76 percent.

The price of gold as well as other precious metals has also increased due to the effect of the ceasefire. The prices of silver, platinum and palladium have increased by 1.7, 1.5 and 1.6 percent respectively.