Gold prices managed to record some slight increases during trading on Tuesday, and are currently approaching the $2,400 per ounce level. This comes amid markets’ anticipation of the issuance of many important economic data this week, most notably the Federal Reserve’s monetary policy decisions, along with US labor market data.
Performance of spot and futures gold contracts:
In terms of trading, December gold futures rose by 0.45% or approximately $10.9 per ounce to trade near $2,436 per ounce. Spot gold futures also rose by 0.31% or approximately $7.5 to trade near $2,391 per ounce.
Reasons for gold's rise today:
Gold prices benefited from the World Gold Council’s report, which indicated that total global demand for gold rose by 4% year-on-year, reaching 1,258 tons, thus recording the strongest quarter on record. The report also mentioned that central banks and official institutions increased their global gold holdings by 183 tons (representing a slowdown from the previous quarter), but still reflecting a 6% increase year-on-year.
Also, an annual survey of central banks by the World Gold Council confirmed that reserve managers believe gold allocations will continue to rise over the next 12 months, driven by the need to protect and diversify portfolios in a complex economic and geopolitical environment, and these points have had a supportive effect on gold prices.
In the same context, gold prices benefited from the continued concerns about geopolitical tensions in the Middle East and the failure to reach a truce in the Gaza Strip, especially after Hamas and Israel exchanged accusations yesterday, Monday, regarding the lack of progress in reaching a ceasefire agreement and releasing hostages in the Gaza Strip despite international mediation.
In addition, the markets are awaiting the release of many important economic data from today until the end of this week, especially the US Federal Reserve's monetary policy decisions, and the US labor market data at the end of the week, which are expected to have a strong and clear impact on gold trading.
Other metals contracts:
On the sidelines of other metals trading other than gold today, spot silver contracts recorded a 0.15% increase and settled near $27.89, while platinum contracts for October delivery rose by 0.46% and recorded about $962.00. However, palladium contracts for September delivery rose by 0.28% and reached about $890.28.
