Gold advances to 4-week peak as US rate cuts expected soon

Posted on:
Key Points

(Reuters) Gold started March on a positive note, with prices rising to a four-week high on Friday after data showing signs of abating inflation hardened expectations of a U.S. rate cut by June...

ET (1429 GMT), its highest since early February and on track for a second straight weekly rise..

Bart Melek, head of commodity strategies at TD Securities, said gold is seeing some upside as the market is convinced that the Fed will ease its monetary policy by mid-year, lowering the opportunity cost of bullion...

In three-four months, prices will hit a record if we see poor economic data and the market is convinced that Fed is ready to cut, he said, adding that strong central bank buying is also supporting the market currently...

The short-term direction of gold and silver will continue to be dictated by incoming economic data and their impact on the dollar, yields and not least rate cut expectations, said Ole Hansen, Saxo Banks head of commodity strategy in a note...

You might be interested in

Gold subdued as US inflation surprise casts doubt on June rate cut

13, Mar, 24

By Harshit Verma (Reuters) -Gold prices steadied on Wednesday, after posting their biggest drop in a month in the previous session, as sticky U.S. inflation raised concerns that the Federal Reserve

Gold slips on dollar strength; US inflation data in focus

08, Jan, 24

By Harshit Verma (Reuters) - Gold prices fell on Monday as fading expectations of an early rate cut in the U.S. kept the dollar and bond yields supported, ahead of a key inflation print due later this