The Price of Gold Climbs to 1846 USD per Ounce
Gold prices rebounded again on Friday 3rd March and are heading for their first weekly rise in five as a decline in the US dollar and Treasury yields eased fears of further rate hikes from the Federal Reserve.
Spot gold rose 0.6% to $1,846.66 an ounce by midday, its highest level in two weeks. US gold futures rose 0.7% to $1,853.70 an ounce in New York.
Until a new catalyst is found, such as next week’s jobs or consumer price data, gold is likely to remain in a range between $1,830 and $1,850, Reuters said. Reuters Bart Melek, head of commodity markets strategy at TD Securities.
With China recovering, there could be continued strength in gold consumption, with people also buying the metal to hedge against inflation, Melek added.
Meanwhile, the US dollar index is heading for its first weekly loss in five, making bullion more attractive to other currency holders, while benchmark 10-year yields have fallen after hitting a near high. four months.
While Fed Governor Christopher Waller said strong economic data could see rates above the 5.1% to 5.4% range, Atlanta Fed President Raphael Bostic said said he favored a “slow and steady” increase and a mid- to late-summer break.
Traders now expect at least three more 25 basis point rate hikes this year, with rates peaking at 5.43% in September.
If gold’s support between $1,780 and $1,800 were to break over the next few weeks, it could be due to a more hawkish shift in US monetary policy, said Craig Erlam, senior market analyst at OANDA, in a note.
