The price of gold has increased by about 1 percent, helped by the dollar falling to a 6-week low against the euro.
Dollar continues to remain under pressure after the latest data on the US economy intensified investors’ doubts the possibility of interest rates hikes by the Federal Reserve in the current year. The precious metal is sensitive to higher interest rates in the United States, but a gradual increase in rates carries less of a threat to the gold price than a series of hikes.
“People are concerned that US interest rates will not rise in the near future, and the stock market overheating further reinforces these concerns,” – said ING analyst Hamza Khan.
US Federal Reserve officials expressed different views regarding the rate increase: Dallas Fed President Kaplan called for caution, while the president of the Federal Reserve Bank of San Francisco, Williams noted that the Fed could raise rates up to two times by the end of this year.
The rise in gold prices by 28 percent this year was largely due to a decrease of expectations that the Fed in the near future will continue to raise interest rates.
Gold reserves in the largest investment fund, SPDR Gold Trust, rose on Monday 8.9 tonnes, recording a maximum one-day inflow from the end of June.
The cost of the August gold futures on COMEX rose to $ 1365.00 per ounce.
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