As investors awaited a clearer signal from the Federal Reserve (Fed) on the timing of an interest rate cut, gold prices took a breather on Thursday (4th), hitting a record high of over $2,300 an ounce before falling back.
gold futuresIt fell 0.2% to $2,311 an ounce.Spot goodsgoldIt hit a record high of 2304.09 earlier and later fell 0.3% to US$2,291.88 an ounce.
This week, central bank officials including Fed President Jerome Powell continue to focus on the need to evaluate more data before cutting interest rates. Expectations of when the Fed will start cutting interest rates have been a key driver of precious metal prices. Financial markets expect the first rate cut to occur in June.
Minneapolis Fed President Neel Kashkari said on Thursday that an interest rate cut may not be necessary this year if inflation stalls, especially if the economy remains strong. Meanwhile, Cleveland Fed President Loretta Mester believes the central bank may be close to the level of confidence needed to begin cutting interest rates within months.
Ball reiterated on Wednesday (3rd) that borrowing costs may be appropriately lowered “sometime this year.”
Economic data showed that as tight labor market conditions gradually eased, the number of people claiming unemployment benefits in the United States reached 221,000 last week, which was higher than market expectations. The market will then focus on Friday’s March non-farm payrolls report, which may provide more clues as to the timing of the Fed’s first interest rate cut.
Strong buying from global central banks and safe-haven inflows amid heightened geopolitical tensionsgoldThe demand boost has sent gold prices up more than 25% since October.
StoneX analyst Rhona O’Connell said: “It is now seriously overbought and needs to pull back to eliminate some of the bubbles. In my opinion, the market has priced in the possibility of a Fed rate cut.”
Joni Teves, precious metals strategist at UBS Group, said,goldis attracting investors seeking portfolio diversification and a hedge against uncertainty. Citing the upcoming U.S. election as an example, she said geopolitical risks continue to exist, and as volatility and uncertainty expand, there are strong reasons to establish strategic allocations.
In terms of other precious metals, spotsilverAfter hitting its highest since June 2021, it fell 0.4% to $27.11 an ounce. Platinum rose 0.8% to $944.45,stipendUp 2% to $1,034.35.
2024-04-04 22:23:30
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