Gold prices reached a two-week high on Wednesday, driven by declining U.S. Treasury yields and dovish signals from Federal Reserve officials Raphael Bostic and Neel Kashkari. Spot gold and U.S. gold futures ascended to $1,871.52 and $1,885.20 per ounce respectively, with projections suggesting a potential surge to $1,900 per ounce, according to Jim Wyckoff of Kitco Metals.
The likelihood of the Federal Reserve maintaining interest rates within the range of 5.25%-5.50% for the remainder of the year stands at 71%, marking a significant departure from the highs seen in 2007. This shift in monetary policy has been a contributing factor in the recent upswing in gold prices.
The bullion market is currently being shaped by several factors, including the forthcoming release of Federal Reserve policy minutes and U.S. Consumer Price Index data. Additionally, an increase in safe-haven demand due to geopolitical tensions related to Hamas is also influencing the market.
In other precious metals news, spot silver also saw an increase on Wednesday, rising to $22.02 per ounce. Platinum and palladium, however, experienced varied movements, highlighting the diverse impacts of current market conditions on different precious metals.
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