Gold prices on September 9 morning rose against the backdrop of the weakening of the dollar against world currencies, and stood at above $1,730 per troy ounce, Report informs referring to the auction data.
December futures for gold on the New York Comex rose $11.65, or 0.68%, to $1,731.85 a troy ounce. December futures for silver rose 1.87% to $18.77 an ounce.
The dollar index (the exchange rate against a basket of currencies of six countries - US trading partners) fell by 0.83%, to 108.8 points. The weakening dollar makes gold more affordable to buy in other currencies, which supports the price of the precious metal.
The dollar was influenced by the strengthening of the euro after the meeting of the European Central Bank (ECB) on September 8. The regulator raised the rate by 75 basis points, to 1.25% per annum, which was the largest increase in history. Traditionally, an increase in the rate supports the exchange rate of the national currency. Paired with the euro, the dollar is depreciating by 0.8%.
Markets now tend to expect a similar increase from the US Federal Reserve. According to the CME Group, 84% of analysts are considering a 75-basis point increase in the Fed’s discount rate, to 3-3.25% per annum. A day earlier, 78% of experts assumed such a probability. The Fed has already raised rates by 75 basis points in two summer meetings, and now analysts are not inclined to expect a slowdown in rate hikes.