The price of Gold prances to 2020 USD per ounce
Gold held on to gains near $2,020 an ounce on Wednesday 5th March despite a rebound in the dollar, as recent U.S. economic data stoked fears of a slowdown and spurred bets that the Federal Reserve could ease policy. rate hikes.
Spot gold was flat at $2,020.72 an ounce as of 1:40 p.m. ET, near its highest level in a year. The precious metal is now around $50 away from trading at an all-time high. US gold futures also had minimal movement, trading at $2,037.70 an ounce.
Gold rose above the key $2,000 level on Tuesday after a sharp decline in US job offers in February, adding to gains earlier in the week after a spike in oil led by the OPEC raised concerns about a further rise in inflation.
Gold could hold gains above that level as economic worries grow, some analysts said. UBS expects gold prices to surpass their all-time high and reach $2,200 by the end of March 2024.
Citi analysts predict that gold prices will remain high in the short term with a rise of $2,300 thanks to several macro factors, including deflationary pressures and the increased likelihood of a recession.
Commodity research consultants CPM Group recently predicted that gold demand would remain elevated due to economic conditions reminiscent of the onset of a recession. “We expect a recession to likely occur in 2024,” Jeffrey Christian, CPM’s managing partner, said in a webcast.
