Notable pullback in gold following rally

The price of an ounce of gold fell below the 4,400 dollar level as investors turned to profit-taking following a strong rally. The rise in oil prices also contributed to the general decline in metal markets.

While the increase in oil prices caused concerns regarding inflation and interest rates to resurface, the weakening of expectations for a new agreement between the US and Iran also increased market volatility. The possibility of a new compromise between the two countries diminished after US President Donald Trump announced that he was not keen on extending the temporary ceasefire agreement.

FED EXPECTATIONS PROVIDE SUPPORT TO GOLD

Following some weak economic data released from the US, expectations regarding the Fed's interest rate policy have also shifted. While the market assesses that the Fed will not make a policy change in September, the expectation for an interest rate hike by the end of the year is also being priced at a lower level compared to a week ago.

Gold prices are also finding support from strong investment demand, particularly in China, and the continued purchases by central banks.

HOW MUCH IS OUNCE GOLD?

Ounce gold started the day at 4,418 dollars. The precious metal, which fell to as low as 4,390 dollars during the day, saw a high of 4,436 dollars. Ounce gold is currently trading at 4,392 dollars.

HOW MUCH IS GRAM GOLD?

Gram gold started the day at 6,803 liras. During the day, it saw a low of 6,763 liras and a high of 6,834 liras. Gram gold is currently finding buyers at 6,767 liras.

News Source: 12punto