Limited Recovery for Gold After Falling from Its Highest Levels

SadaNews Economy - Gold prices rose slightly today, Monday, supported by the prospects of a reduction in U.S. interest rates in the upcoming period, while investors are awaiting the release of U.S. inflation data and trade talks between the United States and China this week to determine the next direction for the markets.

The price of gold in immediate transactions increased to $4252.29 per ounce after recording a decline of about 1.8% on Friday, marking its largest drop since mid-May.

Despite the sharp drop on Friday, gold is still on track for its best weekly performance since April after previously rising to an all-time high of $4378.69 per ounce.

U.S. gold futures for December delivery rose by 1.5% to reach $4280.30 per ounce.

Silver also rose in immediate transactions by 0.5% to $52.08 per ounce, after falling by about 4.4% in the previous session, marking its largest decline since early April after reaching an all-time high of $54.47 per ounce.

Gold, which does not yield returns, continues to rise by more than 60% since the beginning of the year, supported by geopolitical tensions, strong bets on a reduction in U.S. interest rates, along with purchases from central banks, divestment from the dollar, and strong inflows into exchange-traded funds.

Gold sharply declined on Friday after Trump announced that the proposed 100% tariffs on Chinese goods would not be sustainable, adding that he would meet with Chinese President Xi Jinping and believes that things will be fine with China.

HSBC predicted on Friday that rising gold prices could reach $5000 per ounce by 2026, supported by increasing risks and the impact of new players entering the market.

As for other precious metals, platinum fell by 1.1% to $1591.55 per ounce, and palladium declined by 0.5% to $1467.16 per ounce.