Gold prices have risen sharply due to a weaker dollar and falling oil prices.
This was reported by Reuters.
On Tuesday, global precious metals markets saw an increase in the price of gold.
The spot price of the metal rose 0.7% to $5,174.49 per troy ounce.
At the same time, US gold futures for April delivery added 1.6% and rose to $5,184 per ounce.
One of the key factors behind the growth was the currency factor. The US dollar index fell by 0.4%, making gold cheaper for investors operating in other currencies.
Experts note that easing inflationary pressures also contribute to the rise in the price of the metal. When inflation slows, central banks have less reason to raise interest rates. This traditionally supports gold, which does not generate interest income.
The situation on the market for other precious metals
Against the backdrop of rising gold prices, other precious metals also became more expensive.
Silver rose 2% in price and traded at $88.73 per troy ounce.
Platinum added 0.7%, reaching $2,196.35.
At the same time, palladium showed the opposite trend. Its price fell by 0.3% to $1,685.01 per ounce.
The impact of Trump's statements and falling oil prices
OANDA senior market analyst Kelvin Wong noted that the rise in gold is linked to news from the US.
According to him, investor sentiment was influenced by US President Donald Trump's statement about a possible quick end to the war in the Middle East.
Following these statements, oil prices fell sharply by more than 6%, which contributed to a decrease in inflation expectations in global markets.
At the same time, the geopolitical situation remains tense. Trump also warned of the possibility of a significant increase in US strikes if Iran attempts to block the movement of tankers through the Strait of Hormuz.
This sea route is key to the global oil market. About one-fifth of the world's oil supplies pass through it.
The strait is currently effectively blocked, forcing some producers to reduce or temporarily halt production due to overflowing storage facilities.
Market expectations regarding Fed policy
On Monday, gold prices fell by about 2%.
This was due to high energy prices, which heightened inflation fears and forced investors to revise their expectations regarding a possible cut in interest rates by the US Federal Reserve.
