Geopolitical Changes Keeping Investors’ Interest in Gold

At $1,294.60 on Tuesday, the U.S. Comex gold futures were almost unchanged this week after rallying 0.45% last week. The gold futures have climbed 7.68% year-to-date and have dropped 0.10% this month. The Dollar Index has been hovering right around the 80 level for the past week.

As the investors await the April Fed minutes on Wednesday and digest the various Fed governors’ speeches, the market is sensing that the interest rates will be kept at its present rate for a long period of time.

The April U.S. payrolls jumped 288,000 while the unemployment rate dropped to 6.3%. However, the housing sales have slowed and core inflation is up. Elsewhere, Ukraine’s election on 25 May, the latest election victory by India’s BJP Party, and Thai’s martial law are drawing investors’ interests to the gold market.