Gold prices rose today, Friday, as investors awaited the speech of Jerome Powell, Chairman of the US Federal Reserve, which may provide indications on the path to lowering interest rates.
Gold rose in instant transactions by 0.6% to $2,497.19 per ounce by 10:14 GMT, but it remained below an unprecedented high level of $2,531.60 reached last Tuesday. US gold futures also increased 0.6% to $2,532.80.
According to the CME Group's Fed Watch tool, 74% of traders expect interest rates to be reduced by 25 basis points in September, while 26% of investors expect them to be reduced by 50 basis points. Gold, which does not yield a return, rises as interest rates fall.
The rush towards gold reflects the deep fears that the world is experiencing, which led to the price of gold rising to an unprecedented level, driven by fears about inflation and instability.
Gold has seen renewed interest among buyers, from central banks to Chinese individual investors, who trust gold for financial protection.
Central banks, especially in China, Russia, India, and Kazakhstan, bought gold to reduce their dependence on the US dollar. Chinese investors also rushed to buy more gold because they were concerned about the real estate crisis and uncertainty.
