By 8:43 GMT, the spot price of gold had increased by 0.2 percent, reaching $1,741.75 per ounce.
Since March, the price of gold has dropped by more than $300 due to the Federal Reserve’s decision to boost interest rates in an effort to reign in skyrocketing inflation. As a result, the opportunity cost of keeping non-yielding metal has increased.
Gold futures in the United States rose by 0.2 percent to $1,739.80 per ounce.
“The rise in gold prices saw this morning has all the hallmarks of a dead cat bounce… The bears are now in charge, and it is probable that they will continue to drive prices down until physical purchasers are able to set a price floor. However, the direction of travel is obvious “independent analyst Ross Norman was quoted as saying.
The minutes from the Federal Reserve’s meeting in June, which were published on Wednesday, indicated that policymakers were concerned that increasing inflation would undermine trust in the Fed’s capacity to manage it. The 75 basis point increase in interest rates was the largest since 1994.
According to a commentary written by Jeffrey Halley, senior market analyst for Asia Pacific at OANDA, the FOMC minutes provided the United States’ financial markets with little relief but more clarity. He went on to say that it is quite evident that the committee members are “very intent on bringing inflation under control, even if it meant paying the price of a significant economic downturn.”
After hitting a level that hadn’t been seen in over 20 years on Wednesday, the dollar index dropped by 0.2 percent, which provided support for bullion priced in dollars.
Now, market participants are waiting for a more comprehensive look at the status of the world’s largest economy to be provided by the statistics released on Friday about the labour market.
The price of an ounce of spot silver increased by 0.6 percent to $19.29, the price of an ounce of platinum increased by 0.1 percent to $856.74, and the price of an ounce of palladium increased by 1.3 percent to $1,929.61.