The price of gold, which is considered a safe investment during economic crises, reached 2141.79 dollars per ounce.
Thus, compared to the relevant time period last year, the price of gold increased by approximately 15%.
“Concerns about the global economic outlook, geopolitical tensions and expectations of earlier interest rate cuts have fueled demand for the precious metal, driving up its prices,” said ActivTrades analyst Ricardo Evangelista.
Moreover, among these factors, interest rates in the US stand out the most as the main risk factor affecting the price of gold, says Evangelista.
The “Purchasing Managers’ Index” (PMI), which characterizes industrial activity, unexpectedly dropped to 47.8 points in February in the US compared to 49.1 points in January, according to the data compiled by the US institute ISM.
In addition, the index remains below the 50-point mark for the sixteenth month in a row, indicating a slowdown in the industrial sector.
The data fueled predictions that the US central bank could cut borrowing costs much sooner than expected to boost economic activity.
2024-03-05 15:17:16
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