By Sherin Elizabeth Varghese
As the world's top investment manager and financial market journalist, I bring you the latest updates on gold prices. Gold prices have firmed on Wednesday after the killing of a Hamas leader in Iran, with the metal poised for a monthly gain driven by optimism about potential U.S. interest rate cuts and focus on the Federal Reserve's upcoming policy decision.
Gold was up 0.5% at $2,420.41 per ounce, as of 0951 GMT, and has gained more than 4% for the month. U.S. gold futures added 0.6% to $2,418.60.
The dollar was down 0.4%, making bullion more attractive to buyers holding other currencies. "I think we're seeing a weakening of the U.S. dollar, which is always positive for gold. This weakening is related to, on one hand, expectations that the Fed will adopt a positive stance towards cutting rates in September," said Ricardo Evangelista, senior analyst at ActivTrades.
Geopolitical tension has also escalated with the assassination of a Hamas leader in Iran, further boosting the demand for gold as a hedge against risks. As the Fed concludes its meeting, investors are expecting the central bank to maintain current interest rates, but will be closely watching for any hints about potential rate cuts in the future.
Spot silver rose 0.5% at $28.53 per ounce, while platinum gained 0.6% to $964.60 and palladium climbed 2.8% to $913.63. However, both silver and platinum are headed for a monthly decline.
Recent concerns about China's economy have impacted industrial demand for silver, leading to weakness in the base metals market, which has in turn weighed on silver sentiment.
Overall, the current geopolitical tensions, expectations of U.S. interest rate cuts, and economic developments in China are all factors contributing to the movement in precious metal prices. Investors should stay informed and monitor these events closely to make informed decisions about their investments.