Gold prices hit a two-month high

Gold prices jumped on Thursday to an almost two-month high due to the weakening of the dollar and expectations that the Federal Reserve System will soon complete the cycle of raising interest rates. The dollar index is hovering near a 15-month low today.

In the morning trading, spot gold prices rose by 0.2%, reaching $1989 per ounce. Subsequently, the asset declined to the level of $1977. Despite this decline, analysts expect a move to the psychologically important level of $2,000 per ounce.

Precious metal prices have risen by about 5% since the end of June, when they fell to more than 3-month lows. The current rally is mainly due to US economic data indicating that on June 26, the Fed will raise interest rates by 25 basis points for the last time and after that it will complete the cycle of raising the cost of borrowing.

However, analysts believe that interest rates will remain high for some time, and we should not expect an early easing of monetary policy due to the stability of the American economy. In addition, current interest rates are too high to attract investors to the gold market.

Silver is also growing today: the price at the moment reached $25.46 per ounce, which is the highest since mid-May. Platinum lost 0.1% and fell to $972.50, while palladium fell 0.8% to $1,297.13.