Gold rises near $4,400 as the dollar weakens
Gold climbed to around $4,400 an ounce on Wednesday, ending a two-session decline. The move followed a weakening dollar, tied to yen strength, cautious positioning ahead of central-bank decisions, and upcoming US inflation data.
Gold rose to around $4,400 an ounce on Wednesday, ending a two-session decline as a weaker dollar made the metal cheaper for buyers using other currencies. Dollar weakness was driven largely by the yen’s sharp appreciation this month and by cautious positioning ahead of several major central bank decisions. The US Federal Reserve, the European Central Bank and the Bank of Japan are all expected to raise interest rates this month, while investors await key US inflation data this week for further clues on the Fed’s policy outlook. Oil prices continued to rise amid escalating Middle East tensions, adding to inflation concerns and strengthening expectations for rate hikes.
Gold is traditionally seen as an inflation hedge, but higher interest rates can weigh on demand for the non-yielding metal by making interest-bearing assets more attractive.