Gold closed above US$2,000 and reached its highest in a year

Gold extended its gains on Tuesday past $2,000 an ounceas the dollar and yields fell as weak US economic data spurred bets on a slowdown in rate hikes, despite inflation concerns.

Spot gold rose 1.7% to $2,017.92 an ounce, after reaching its highest level since March 9 last year at $2,024.89. Gold futures in the United States gained 1.9% to $2,038.20.

Following the rise of gold, Silver rose 3.8% to $24.91 an ounce, platinum rose 3.3% to $1,017.91, while palladium rose 0.3% to $1,456.05. .

“We are in a very positive environment for gold with slowing economic data and inflationary pressures still high,” said David Meger, director of metals trading at High Ridge Futures.

Gold’s appeal, especially among cross-currency traders, was heightened by the dollar’s decline, after reports that the number of job vacancies in the United States fell to its lowest level in almost two years in February.while factory orders also fell.

The rebound in oil prices this week after a surprise production cut by OPEC+ helped goldtraditionally considered the preferred hedge against inflation, to shake off the usual pressure of the probability of interest rate hikes.

“From a technical perspective, the gold price is likely to remain strong and stabilize at or even above its current level. The $2,050 mark could act as a major resistance level, and if breached, prices could quickly skyrocket to their all-time high.said Alexander Zumpfe, a precious metals trader at Heraeus.

Markets now see a 43% chance of the Fed raising rates a quarter basis point in May, and a 57% chance of a pause.

However, Han Tan, chief market analyst at Exinity, said further rate hikes could cause gold to lose some of its recent gains.