The price of gold rises ahead of the U.S. Federal Reserve Chair Jerome Powell's speech on measures to stimulate the economy and due to situation in Afghanistan. During the Friday morning trades, gold price per gram topped $57.9 U.S. dollars, according to Kitco Metals, a retailer of precious metals that also provides market insights and data.
Gold price are supported by the unstable situation near Kabul airport in Afghanistan, Senior Market Analyst at OANDA Ed Moya said in an article published in marketpulse.com.
Gold has traditionally been considered as a safe haven asset, so demand for it rises as political risks and uncertainties increase.
At the same time, gold is clearly locked into wait-and-see mode over Fed Chair Powell’s speech, according to the OANDA expert. The head of the Fed may provide hints on how and when they will pull back monetary stimulus, which may affect the U.S. dollar rate, to which gold is sensitive.
A more expensive U.S. dollar makes gold less attractive to buy in another currency, and vice versa.