Global gold prices have climbed sharply as a weaker US dollar and falling crude oil prices boosted demand for the precious metal. The rise continued for a third consecutive trading session, pushing international gold prices to their highest level in nearly a month.
During trading on Wednesday, spot gold prices jumped 2.4 per cent to reach $4,175.53 per ounce in the international market. This marked the highest level since 7 July. At the same time, US gold futures gained 2 per cent, trading at $4,235.30 per ounce.
Market analysts said investors are closely watching upcoming US employment data ahead of the Federal Reserve’s next decision on interest rates. The direction of monetary policy in the world’s largest economy remains a key factor influencing global financial markets, including precious metals.
A softer US dollar has made gold more attractive to buyers holding other currencies, as the metal becomes relatively cheaper outside the dollar-based market. At the same time, lower crude oil prices have eased concerns over inflation, increasing expectations that central banks may have more flexibility in adjusting interest rates.
Kelvin Wong, senior market analyst at OANDA, said movements in the energy market play an important role in shaping global economic conditions and inflation trends. According to him, fluctuations in oil prices, along with changes in the international geopolitical landscape, continue to have a direct impact on gold prices.
Gold is traditionally viewed as a safe-haven asset during periods of economic uncertainty, currency volatility and geopolitical tension. Investors often turn to the metal as a store of value when confidence in traditional financial assets weakens.
The recent rally in gold prices has also been supported by expectations surrounding future interest rate movements. When interest rates decline or investors anticipate lower rates, non-yielding assets such as gold often become more attractive because the opportunity cost of holding them decreases.
The upward trend was not limited to gold alone. Other precious metals also recorded significant gains in international markets.
Spot silver prices rose 3.8 per cent to $61.76 per ounce, reflecting strong buying interest across the precious metals sector. Platinum prices increased by 2.6 per cent to $1,779.25 per ounce, while palladium also gained 2.6 per cent to reach $1,389.15 per ounce. The latest palladium price represented its highest level in two months.
Analysts believe precious metal markets will remain sensitive to developments in US economic data, central bank policies, currency movements and global geopolitical conditions. Investors are now waiting for further signals from the Federal Reserve and economic indicators to assess whether the current momentum in gold prices can continue.
