Analysts speculate this rally follows signs that the US Federal Reserve is edging closer to rate cuts. Geopolitical tensions and Asian Demand for the precious metal are also having an effect.
This upshoot is 1.6% more than the commodity’s closing price on Thursday, 28 March 2024. Since February 2024, Gold has risen in value by approximately 14%.
According to the latest data, US inflation is ebbing and may reduce borrowing expenses. Also having an influence are the Gaza and Ukraine conflicts and Asian Demand, especially from China.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
Bloomberg indicated that swap markets are factoring in a 61% chance of an interest rate cut in June 2024, which benefits the gold price.
The head of commodities strategy at ING Group N.V. (ING), Warren Patterson, said:
Inflation data, and Powell’s comments in particular, have provided a further boost to gold, with the market becoming increasingly convinced that the Fed will start to cut rates in June… it wouldn’t take much of a catalyst to see a pullback in the short term.
An analysis shows gold climbed by 3% during the last week of March 2024. Bloomberg reports that China’s demand for gold stood out in recent quarters and that the country’s central bank significantly supplemented its gold reserves. Leading financial institutions affirmed this strong show by naming metal the top commodity.
The post Gold Price Surges in the Wake of Possible Fed Cuts and Asian Demand appeared first on LeapRate.
