Gold Prices Today, July 22: Yellow metal rises to one-week high as weak US dollar boosts demand

Gold Prices Today, July 22: Gold prices gained on Wednesday, July 22, rising to a more than one-week high, supported by weakness in the US dollar. The decline in the dollar made the yellow metal more attractive for foreign buyers, boosting demand for gold.

As of 6:35 am, spot gold was trading 0.9 per cent higher, up by USD 37, at USD 4,114.08 per ounce. Gold prices during the trading session touched their highest level since July 13.

Meanwhile, spot silver prices also gained momentum, rising over 1.5 per cent or USD 1 to trade at USD 59.76 per ounce.

Gold and silver prices in India today

Domestic gold and silver prices were not trading at the time of writing this report. However, gold futures settled more than 1 per cent higher at Rs 142,900 per 10 grams, while silver futures settled at Rs 223,800 per kg.

Weak US dollar supports gold prices

The US dollar, measured against a basket of six major currencies, traded 0.1 per cent lower, providing support to bullion prices.

A weaker US dollar generally benefits gold prices as it makes the precious metal cheaper for buyers holding other currencies. This increases demand and strengthens gold’s appeal as a store of value.

Middle East developments support bullion sentiment

Gold prices also received support from hopes of de-escalation in the Middle East. A senior Iranian official told Reuters that Tehran had received a proposal from mediators for a 10-day ceasefire as efforts continued to salvage the interim deal.

A possible reduction in tensions in the region could ease inflation concerns, reducing the chances of further interest rate hikes and supporting bullion prices.

Crude oil prices continue to rise

Despite hopes of de-escalation, crude oil prices moved higher. Brent oil futures gained 0.7 per cent to trade at USD 92.09 per barrel, while WTI crude futures rose more than 1 per cent to USD 85.25 per barrel.

Rate hike expectations remain in focus

On the interest rate front, the possibility of a rate hike at the September FOMC meeting increased to over 70 per cent, while expectations for a rate hike at the December FOMC meeting stood around 90 per cent.

Interest rate hikes are generally considered negative for gold prices, as higher rates increase the opportunity cost of holding non-yielding assets like bullion and often support the US dollar.

Investors await US economic data and Iran developments

Investors are now closely watching upcoming economic data from the United States, which could provide further insights into inflation conditions in the world’s largest economy.

Market participants will also continue to monitor developments surrounding the US-Iran conflict, which could influence global markets and bullion prices.

(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)