2024-03-27 10:24:19
Gold prices recorded stability today, Wednesday, and traded in a narrow range, in light of the rise in the dollar, and cautious investors awaited more indications of the monetary policy path that the US Central Bank will follow.
Gold settled in spot transactions this morning at $2,179.33 per ounce, while US gold futures contracts saw little change and remained at $2,178.50 per ounce.
In parallel, the dollar index increased 0.1% once morest a basket of competing major currencies, making it more expensive for holders of other currencies to buy gold.
Record levels for gold
This comes following gold prices rose more than 5% so far this year and reached a record high level last week, supported by increased bets on the US Central Bank’s shift towards monetary easing, continued demand for the precious metal as a safe haven, and central banks’ purchases of bullion amid geopolitical tension. .
Last Thursday, gold broke a new record with the price of an ounce exceeding $2,200, driven by the possibility of a cut in key interest rates this year.
In this regard, Matt Simpson, chief analyst at City Index, explains, “It is difficult to build an excessively bearish case for gold prices in light of the current geopolitical background and potential monetary easing.”
The US Central Bank kept the interest rate unchanged between the range of 5.25% and 5.5% last week, and maintained its expectations of making 3 cuts by the end of the year.
Keep an eye on interest rates
Investors are now awaiting the core personal consumer spending index data in the United States, scheduled to be released on Friday, to find out when the US Federal Reserve may start lowering interest rates.
According to CME Group’s Feed Watch service, traders expect a 72% chance that the US central bank will start cutting interest rates in June.
Lower interest rates would reduce the opportunity cost of holding bullion.
As for other precious metals, silver settled in spot transactions at $24.44 per ounce, while platinum rose 0.2% to $905.05, and palladium fell 0.5% to $988.81.
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