Taking into account that the precious metal usually rises when there is trouble or when it appears, the question that market operators ask themselves is, what does gold know that they know? This is taking into account that gold can anticipate complicated macro scenarios.
The gold prices are heading toward a historic milestone on Tuesday, supported by growing expectations of an interest rate cut. the Federal Reserve in June. Market attention is focused on Fed Chair Jerome Powell’s speech and a key employment data, both events that could provide clearer direction for investors.
Spot gold experienced an increase of 0.5%, reaching US$2,124.70 per ounce, being just 10 dollars away from its current all-time high of US$2,135.40, recorded on December 4. December. Meanwhile, gold futures in the United States show an increase of 0.4%, standing at $2,133.90.
ActivTrades Senior Analyst Ricardo Evangelista comments: “Gold Likely to Hit New All-Time Highs Soon with US Interest Rate Cut Possiblewhile global geopolitical uncertainty and apprehension over economic activity are likely to fuel high demand for gold.”
Last week, gold experienced an increase of around 50 dollarsdriven by unfavorable US manufacturing data and easing price pressures.
Gold: the data analyzed by the market
The Fed’s Raphael Bostic said Monday that he still believes it is appropriate to approve two quarter-point rate cuts by the end of this year. Attention now turns to Powell’s two-day testimony before Congress this Wednesday and Thursday, amid a week packed with crucial jobs data, as investors look for more clues on the central bank’s possible rate cut schedule.
Traders see a more than 50% chance that the Fed will initiate rate cuts in June, according to CME’s FedWatch tool. This drop in rates increases the attraction of bullion, since it does not generate interest.
As for other precious metals, spot platinum fell 0.9% to $889.60 per ounce; palladium loses 1.2%, trading at $948.30; and silver shows a slight increase of 0.2%, reaching $23.94.
Source: Ambito
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