Gold prices hit their highest level intraday since August 2020 on Thursday while flirting with a new record as the yellow metal rallied on the back of a weaker U.S. dollar.
Price action
-
Gold for June delivery
GC00,
+0.24% GCM23,
+0.24%
gained $12.50, or 0.6%, to $2,049 per ounce on Comex. -
Silver for July
SI00,
+0.64% SIN23,
+0.64%
delivery gained 18 cents, or 0.7%, to $25.75 per ounce. -
Palladium for June delivery
PAM23,
-0.41%
rose by $2.70, or 0.2%, to $1,419 per ounce, while platinum for July
PLN23,
-0.08%
fell by $1.70, or 0.2%, to $1,064 per ounce. -
Copper for July
HGN23,
+0.35%
delivery gained 3 cents, or 0.8%, to $3.87 per pound.
Market drivers
The U.S. dollar weakened after Federal Reserve Chairman Jerome Powell on Wednesday suggested that the central bank would likely keep interest rates on hold after hiking its policy rate by 5 percentage points since March 2022.
A weaker dollar has helped to lift gold, as have fears about a weakening U.S. economy.
“The blend of economic concerns, sliding Treasury yields, and a weak dollar, allowed gold to shine again,” said Charalampos Pissouros, senior investment analyst at XM.
The ICE U.S. Dollar Index
DXY,
a gauge of the currency’s strength against its main rivals, was marginally lower at 101.32.
