Gold price extended its gains still second day in a row this Thursday, March 23, driven by a dollar drop and Treasury bond yields after the Federal Reserve signaled that it may be about to end its cycle of monetary tightening.
He spot gold went up a 1.3% to $1,994.42 the ounce. The gold futures in the United States climbed a 2.4% to $1,997.40.
Last Wednesday, the Federal Reserve raised rates by a quarter of a percentage point, but indicated that he was about to take a break.
If they really do pause, that’s a green light for the gold market.since it is an excellent protection against inflation, said David Meger, Director of Metals Trading at High Ridge Futuresadding that “inflation is likely to remain elevated if we cannot raise rates any further.”
Last Monday, gold hit its highest level in a year.surpassing the US$2,000 barrier, thanks to the demand for safe haven generated by the banking crisis, although it later gave up some ground after the Credit Suisse bailout.
The outlook remains positive if the Fed pauses or the banking crisis continues, according to analysts.
Goldman Sachs raised its forecasts for the price of golddescribing it as the best coverage against financial risksadding to similar upward revisions from Citi, ANZ and Commerzbank.
The dollar is near the lows of early Februaryfalling for the sixth session and making gold cheaper for holders of other currencies. Benchmark US Treasury yields also fell and improved the attractiveness of non-interest bearing bullion.
In other metals, the silver spot rose 0.5% to $23.14 an ounce, and the platinum gained 0.8% to $986.08. He palladium it fell 1% to $1,436.30.
Source: Ambito
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