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Precious metals rally as U.S. dollar extends losses

Gold prices climbed more than 1% to their highest levels in a week on Tuesday!

In addition, other precious metals also rallied on the back of a sliding dollar, as markets remained focused on the Federal Reserve’s interest rate strategy.

Tweet on gold chart fluctuation

The yen surged to a four-month peak against the dollar after the Bank of Japan stunned markets by deciding to review its yield-curve control policy

Weaker housing data lead to flight-to-safety buying in the precious metals, which along with the decision from the Bank of Japan, was the “perfect storm” this morning

Bullion has shed more than $260 an ounce since its March peak as central banks stepped up efforts to fight soaring inflation, but is enjoying its best quarter since early 2020, up 9.5% so far.

  • Higher interest rates increase the opportunity cost of holding bullion that pays no interest.

Platinum was up 2.8% to $1,006.75 while palladium gained 3.2% to $1,722.85.