Gold Prices Increased on Tuesday, Reaching a Two-Week High

Dollar inflation also influences gold price boost. Investors wait for the U.S. federal reserve’s latest policy meeting release.

Gold futures increased by 0.8% and reached $1,797.65 by GMT 3:34 AM. It is the highest result since June 18 ($1,794.86).

The dollar usually moves in reverse to gold. As predicted, gold’s rise came along with the dollar’s drop on Tuesday morning after its three-month high at the end of last week. Because of the holidays, markets in the U.S. were not open on Monday.

Investors stay focused on the Fed’s June meeting, scheduled for further instructions and market forecast on Wednesday.

Investors also wait for the data from the Reverse Bank of Australia’s policy decision. The data release should come later today.

From the data perspective, household spending in Japan increased by 11.6% year-on-year in May

It is higher than the predicted 10.9% growth but lower than April’s 13% growth. It has shrunk by 2.1% month to month.

The Markit composite purchasing managers’ index, also known as PMI for June, was 59,5 in Europe. Simultaneously, the PMI’s services were 58.3%.

Both PMI results were higher than predicted. Besides, the businesses in the area are growing at the sharpest rate in 15 years.

The U.S. Institute of Supply Management (ISM) non-manufacturing PMI for June across the Atlantic should also come later today.

World-wide shares stayed close to record-highs on Monday. They had support from both the European data and the latest U.S. jobs report issued on Friday.

In the meantime, the Postal Savings Bank of China delayed account openings for spot precious metals market trading. The decision was made due to price fluctuations and raised trading risks.

Meanwhile, Silver dropped by 0.1%, while palladium earned 0.3% and platinum climbed by 0.5%.