Gold skyrocketed: it touched its highest value in a year and approached its all-time record

He Gold price soared to eight-month high and approached its all-time record, marked on August 6, 2020 when it touched US$2,069.40. This strong rise was driven by weak economic reports in the United States that reinforced the bets on a pause in interest rate hikes by the Federal Reservebetween prospects for a mild recession which also sent investors looking for their safety.

Spot gold advanced 1.4%to $2,042.50 the ounce, his highest level since March 2022 already some $30 off its all-time highreached in 2020. The gold futures in the United States they closed with an increase of 1.5%to $2,055.30.

He Treasury yields fell and the dollar sank after data that showed a moderation in the increase in producer prices last month and a uptick in jobless claimswhich suggests that the Fed’s aggressive tightening over the past year is taking its toll on the economy.

“These economic data reinforced the market assessment that the cycle of interest rate hikes is coming to an endwhich makes gold attractive to investors as it pays no interest on its own,” said Alexander Zumpfe of Heraeus.

In addition, the consumer prices in the United States they barely rose in March as the cost of gasoline fell, although stubbornly high rents kept underlying inflationary pressures simmering.

“It’s about a positive underlying environment for goldin which the Fed has finished its cycle of interest rate hikes, but headline inflation is still higher than they would like,” he said. David Meger of High Ridge Futures.

A refuge assetlike gold, tends to rise in times of economic or financial uncertaintywhile lower rates also increase its attractiveness, since it does not accrue interest.

In other precious metals, the silver spot rose 1.6% to a one-year high of $25.88 an ounce; he platinum earned 3.7%, at $1,052.70; and the palladium it advanced 3.8%, to u$s1,515.95.