Gold prices up amid uncertain global economic outlook

Gold prices edged up today, July 26, on investors’ concerns over slower global growth, which prompted safe-haven appeal of bullion, although worries of a US interest rate hike remain limiting this rise.

Gold futures for August delivery jumped 0.33% to $1,724.80 an ounce at 10:36 AM Makkah time, with spot prices also gaining 0.38% to $1,726.06 per ounce.

Similarly, silver futures for September delivery surged 1.10% to $ 18.53 an ounce. The spot price for platinum also increased 0.77% to $885.95, as the spot price of palladium rose 0.49% to $2,017.43.

Meanwhile, the main dollar index, which measures the performance of the US currency against a basket of six currencies, gained ground at 106.44 points, remaining near its highest level since 2002.

All eyes are on the Federal Reserve's meeting tomorrow, with expectations that the central bank will opt for a second straight 75-basis-point interest rate hike after US inflation accelerated to 9.1% — its highest level since 1981.

On July 25, the Reserve Bank of Zimbabwe announced the distribution of 2,000 gold coins to commercial banks to sell to the public to be used in transactions and purchases, which boosted demand for gold further. The move marks an unprecedented step that is aimed at enhancing confidence in the country’s currency and curbing inflation.