He Gold price soars to 2-year highs and is approaching its all-time record, marked on August 6, 2020 when it touched US$2,069.40. This strong rise is driven by bets that the US Federal Reserve could pause or slow down rate hikes and its predictions of a mild recession this year.
He gold cash up 1.4%, au$s2.053,80 the ounce, about $15 off all-time highs reached in 2020.
Gold received support after data last Wednesday showed that the Consumer’s price index (CPI) of The United States rose 0.1% last month, after advancing 0.4% in Februarywhich increased the hopes that the Federal Reserve was nearing the end of its monetary policy tightening cycle.
These expectations were reinforced by the minutes of the March Federal Reserve meetingwhich indicated that various authorities considered the possibility of pausing rate hikes and they anticipated that the recent tensions in the banking sector would send the economy into a recession.
While traders are nervous about an economic downturn and the spread of the banking crisisit is likely that gold continues to risealthough it is likely to remain prone to profit-taking when it hits the highs, said independent analyst Ross Norman.
Gold, a safe haven, tends to rise in times of economic or financial uncertainty.while lower rates also increase its attractivenesssince it does not yield interest.
Among other precious metals, the silver spot was up 0.4% at $25.58 an ounce, the platinum was up 0.9% at $1,024.71 and the palladium it was down 0.2% at $1,457.78.
Source: Ambito
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