Gold prices hit highest in a week in global market

The gold market seems to have come back to life as the price of fuel oil in the global market has come down a bit. Despite the US central bank raising interest rates, the price of gold has risen sharply. After increasing its price for two consecutive days, gold is now selling at its highest price in the last one week. Not only gold, but the prices of other precious metals like silver and platinum are also rising quite a bit.

On Friday (September 18), the price of gold per ounce in the international market increased by about one percent to $4,378.97.

Why did the gold market suddenly surge? The oil market had been in a slump for three days on news that oil supplies from Saudi Arabia would remain normal despite the war in the Middle East. Market analysts say that buyers and investors have received a great deal of relief due to the reduction in oil prices. They believe that central banks may not raise interest rates much.

It is generally seen that when inflation or commodity prices increase in a country, people consider buying gold as the safest option rather than banking or stock market. However, when interest rates in banks increase, people's inclination towards gold decreases again. Although the US central bank has recently indicated that it will increase interest rates further, the renowned international bank 'Goldman Sachs' says that this will not cause a major collapse in the gold market. In fact, the price of gold per ounce may reach $5,400 by the end of 2027.

Other countries are also raising interest rates to cope with rising global inflation. Japan has even raised its own interest rate to its highest level in 31 years.

According to experts, the future of the gold market will ultimately depend largely on the war situation in the Middle East. If the conflict continues for a long time and oil prices continue to rise sharply again, banks will be forced to raise interest rates. And if that happens, the price of gold could fall slightly.

However, at the end of this week, the market for all other metals, including gold, is quite strong. The price of silver has increased by about three percent to $67.03 per ounce. At the same time, the prices of platinum and palladium have also increased significantly. Overall, this week has shown a lot of profit for all precious metals.