Gold prices skyrocketed on Monday, April 1, 2024, reaching as high as $2,265.53 per ounce.
Analysts speculated that the rise was in response to signs that the U.S. Federal Reserve was inching closer to cutting interest rates. Geopolitical tensions and demand for precious metals in Asia are also having an impact.
This increase is 1.6% higher than the commodity’s closing price on Thursday, March 28, 2024. Since February 2024, the value of gold has increased by approximately 14%.
The latest data shows that US inflation is on the decline, potentially reducing borrowing costs. The Gaza conflict, the Ukraine conflict, and demand from Asia, especially China, are also having an impact.
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Bloomberg suggested that the swap market is pricing in a 61% chance of a rate cut in June 2024, which would be positive for gold prices.
Warren Patterson, head of product strategy at ING Group NV (ING), said:
Inflation data, especially Powell’s comments, are providing further support for gold, and the market is becoming more confident that the Fed will start cutting rates in June, so it won’t take much of a trigger to see a rebound in the short market. Probably not. semester.
According to the analysis, gold rose 3% in the last week of March 2024. Bloomberg reported that China’s demand for gold has been outstanding in recent quarters, with the country’s central bank significantly replenishing its gold reserves. Major financial institutions affirmed this strong performance by naming metals as a top commodity.
https://www.leaprate.com/news/gold-price-surges-in-the-wake-of-possible-fed-cuts-and-asian-demand/
