Gold prices rose by 0.3% today, Monday, to reach $ 1797.81 an ounce (an ounce) during trading, and US gold futures increased by 0.1%, to $ 1797.20.
According to Arabiya Net, the decline of the dollar supports that rise, at a time when investors are evaluating the possible reaction of the Federal Reserve to inflationary pressures, after its chairman said that inflation may continue for a longer period than expected.
On Friday, the metal rose to its highest level since early September, before giving up some gains on the back of Federal Reserve Chairman Jerome Powell saying that the US central bank should start reducing its asset purchases.
Gold is seeing some short-term momentum, as some investors are looking for a hedge against inflation and see gold as a potential asset, said Kyle Rhoda, market analyst at IG. That, adding that $1830 is a major resistance if gold exceeds $1800.
But in the long run, Rhoda said the trajectory of gold depends primarily on how central banks act to contain inflation.
Gold is often considered an inflation hedge, but reducing stimulus and raising interest rates raise government bond yields, leading to a higher opportunity cost of holding the non-yielding metal. .
For other precious metals, silver rose in spot transactions 0.5%, to $24.43 an ounce. Platinum rose 0.2%, to $ 1042.23, and palladium increased 0.6 percent, to $ 2033.21.
