On Tuesday (March 28), gold futures closed 1.01% higher at $1,973.50/ounce, with silver futures up 1.19% to close at $23.42/ounce and palladium futures up 0.8% to settle at $1,414.70/ounce. Platinum futures, however, were down 1.08% at $971.90/ounce.
Gold futures benefited from a weak dollar, with the greenback down 0.41% to 102.4281 overnight, making gold contracts priced in dollars cheaper for investors holding other currencies.
The rise in gold prices also reflected investor speculation as gold contracts had fallen during the previous two working days.
Investors are currently waiting for the release of the Personal Consumption Expenditure (PCE) Price Index on Friday, which could indicate the Federal Reserve’s interest rate direction. The PCE index is a gauge of inflation that the Fed cares about and covers a broader range of prices for goods and services than the Consumer Price Index (CPI) data.
The gains in silver and palladium futures can also be attributed to a weakened dollar and general optimism towards these precious metals in the current financial climate.
Overall, these factors have combined to make gold and other precious metals a desirable investment option for many investors. With price movements continuing to be closely watched in the coming days, the market for precious metals looks set to remain highly active.