Written by Islam Saeed Monday, March 4, 2024 09:35 PM Rose Global gold price per ounce Today, Monday, at the beginning of the week’s trading, it recorded its highest level in 3 months, breaching the level of $2,100 per ounce, amid a change in market expectations regarding the path of US interest rates.
The price of an ounce of global gold rose today, Monday, by 1.7%, to record the highest level since the first week of December at $2,119 per ounce, recording an increase of $37, after another rise last Friday by 1.9%, during which it recorded a profit of $38, according to technical analysis. For Gold Bellion.
Since the beginning of March, the global price of an ounce of gold has increased by 3.6%, breaching the level of $2,100 per ounce, after the price stabilized for nearly two months, fluctuating between $2000 – $2050 per ounce.
The weak data released by the US economy last week increased expectations that the Federal Reserve is on its way to begin cutting interest rates next June, with markets placing a 70% probability of this happening, which has helped the price of gold rise since the end of last week.
Nearly three in five investors are betting the Federal Reserve will cut interest rates in June after a series of weaker-than-expected US data reports, swap markets data show. Gold, which does not offer a return to its holders, tends to perform positively when interest rates fall.
On the other hand, demand for gold as a safe haven continued to increase in light of the continuing geopolitical tensions in addition to renewed concerns about the American banking sector, as the American regional banking index declined for two consecutive weeks, bringing back fears about a new banking crisis in the United States.
Financial hedge funds and exchange-traded funds backed by gold have returned to buy the precious metal to adjust their buying positions in line with current US interest rate expectations, and purchases of gold by funds may continue for some time, especially since the last 8 weeks have witnessed net cash flows outside investment funds. With a value of up to 93 tons of gold.
Strong buying by investors in gold exchange-traded funds was reflected in the performance of the world’s largest gold mutual fund, SPDR Gold Shares (GLD), as the fund’s holdings rose to witness its first daily inflow in nine trading sessions on Friday.
It is noteworthy that gold ETFs were the main driver of gold’s rise to its highest level ever during the Corona epidemic period in 2020.
2024-03-04 19:35:00
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