Khaberni - Gold rose on Wednesday to its highest level in nearly 7 weeks and is on track to record the biggest one-day rise since February/February, thanks to the drop in US Treasury yields and renewed hopes for progress in opening the Strait of Hormuz.
According to Reuters, the price of gold in spot transactions jumped 4.4% to $4256.85 per ounce, after reaching its highest since June 18 at $4258.99, surpassing the 50-day moving average that now supports it at $4160.
US gold futures for December delivery rose 4% to $4317.40.
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The independent metals dealer, Tai Wong said, "Investors who first adopt new trends are returning to precious metals as the likelihood of interest rate hikes has declined since last week. The sharp decline in the dollar also contributed to this, as well as the 'truce' with Iran."
The dollar was traded near its lowest level in 6 weeks against major currencies, and the yield on 10-year US Treasury bonds hovered near the lowest level in a week after President Donald Trump said his administration had "very good discussions" with Iran during negotiations that lasted all Tuesday, reviving hopes that the ongoing war for 5 months is nearing its end.
However, gold is still down 24% from its all-time high recorded at $5595 in January, and down 19% since the outbreak of the Iran war which fueled fears of inflated energy costs and bolstered bets on rising interest rates.
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Regarding other metals, silver in spot transactions jumped 4.9% to $62.44 per ounce after recording its highest level since July 6th.
Platinum remained stable at $1735.28, after reaching its highest level since June 17th earlier. Palladium rose 1.6% to $1374.75 after reaching the highest level since June 2nd.
The recording of these precious metals at unprecedented levels was driven by hopes of a breakthrough in talks to stop the Iran war.
