MUSCAT: Spot gold remained steady at $2,621.19 an ounce, despite a slight dip in U.S. gold futures, which decreased by 0.3% to $2,637 an ounce. This stability in gold prices comes after recent U.S. economic data suggested that inflation may be cooling. Experts speculate that this could lead to less pressure on the Federal Reserve to hike interest rates, a scenario that typically benefits non-yielding assets like gold.
The market’s reaction to slowing inflation has been cautious, with investors monitoring how the Federal Reserve responds. Gold, which does not offer a yield, tends to attract more interest when inflation concerns are high, as it serves as a safe haven during periods of economic uncertainty. With inflation appearing to ease, investors may be less inclined to seek alternatives to gold, further stabilizing its price.
In addition to gold, other precious metals experienced a mixed performance. Silver, for instance, rose by 0.3% to $29.59 per ounce, continuing its upward trend. Silver has been one of the more resilient metals, benefiting from both industrial demand and investment interest, which has kept its price growing steadily over recent months.
Meanwhile, platinum saw a modest increase of 0.4%, reaching $929.83 per ounce. Its price has been bolstered by steady industrial demand, especially from the automotive sector, where platinum is used in catalytic converters. However, palladium faced a decline, slipping 0.9% to $912.21 per ounce, reflecting the changing demand dynamics in the metals market, particularly in automotive manufacturing.
