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Gold remains at all-time highs amid expectations of rate cuts in June

Gold remains at all-time highs amid expectations of rate cuts in June

The gold prices They extended their record streak this Monday April 1since the latest economic data showed a slowdown in inflationary trend in USA drove expectations that the Federal Reserve can apply your first interest rate cut in June.

Lower rates reduce the opportunity cost of holding bullion, which does not earn interest.

Spot gold rises 1%, $2,254.71 per ounceafter hitting an all-time high of $2,262.19 earlier in the session. Gold futures in the United States gained a 1.7%, to $2,275.60.

Precious metals driven by economic data

Data released on Friday showed that US prices moderated in Februarywhich keeps on the table a Fed rate cut in June. The president of the entity, Jerome Powellsaid that the inflation data is “more in line with what we want to see”.

“He inflation data American last Friday, somewhat below expectations, supports prospects for a mid-year rate cut by the Fed,” he said Giovanni StaunovoUBS analyst.

Gold boosted by Middle East wars

Economists also believe that gold benefits from geopolitical tensions in the Middle East and of the uncertainty generated by a year in which many elections are held.

In turn, the dollar weaknesswhich makes the gold more attractive to foreign investorsalso helps, along with the accumulation of gold by central banks and China.

Rising rate cut expectations, safe-haven demand and central bank buying amid geopolitical tensions boosted the gold, which has already risen more than 9% this year.

In other precious metals, the cash money advances 0.6%, to $25.11 the ounce; he platinum improves 0.8%, to $914.85; and the palladium rises 1.1%, to $1,025.85.

Source: Ambito

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