Gold price increases in short term 6/6

Gold prices have bounced back due to a larger-than-anticipated drop in the US services sector during May. Some experts suggest that the precious metal is gaining momentum as the economy remains bleak, and economic data continues to disappoint. This trend of recession may force the US Federal Reserve to put a halt on raising interest rates. There is a high likelihood of the Fed keeping rates unchanged during its upcoming monetary policy meeting in mid-June.

Furthermore, the weakening US dollar has provided support to gold prices. Additionally, the US Dollar Index, which measures the greenback’s volatility, has increased the attractiveness of gold. With economic information deteriorating, investors are once again turning to gold to hedge risks and seek profit opportunities.