Gold prices rise over 5%

Gold prices rose slightly on January 24 amid investors’ expectations of signals from the US Federal Reserve System (FRS) regarding further monetary policy, Report informs.

The price of February futures for gold on the New York Comex exchange rose by $5.35, or 0.29%, to $1,837.15 per troy ounce. March silver futures fell 0.35% to $24.235 an ounce.

There is a positive trend in the precious metal market, which is facilitated by the choice of investors in favor of safe-haven assets ahead of the US Federal Reserve meeting, after which it may become clearer how it will tighten monetary policy by raising the discount rate.

Markets are estimating about four rate hikes this year, implying a target of 1% to 1.25% by early next year. This could put pressure on precious metal prices, the Wall Street Journal reports.