Gold prices experienced a rise on Tuesday, closely approaching their previously achieved peak, propelled by sustained purchases by central banks and the market’s anticipation of upcoming economic updates. Specifically, the price of spot gold increased by 0.3% to $2,345.09 per ounce, nearing its Monday’s record of $2,353.79. Similarly, U.S. gold futures saw a rise of 0.5%, reaching $2,363.50. This surge is attributed to central bank acquisitions and speculative investments, driving prices to new heights regularly. The financial community is keenly awaiting the Federal Reserve’s latest meeting minutes and U.S. inflation data, expected to provide further market direction. The anticipation builds especially after the Fed’s decision to maintain interest rates, coupled with adjustments in rate cut expectations following a robust U.S. employment report.
On the oil front, prices witnessed an uptick on Tuesday due to reduced hopes for a ceasefire between Israel and Hamas, amid ongoing concerns that the persisting conflict might disrupt Middle Eastern oil supplies. Brent crude futures modestly increased by 14 cents to $90.52 a barrel, while U.S. West Texas Intermediate (WTI) crude was up by 10 cents at $86.53. The escalation of geopolitical tensions, especially with potential involvement from other regional players, underscores the fragile balance in oil supply dynamics. Despite temporary market optimism for easing tensions, the situation’s complexity, especially concerning Iran’s involvement following recent events, contributes to the geopolitical risk premium affecting oil prices.
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