Gold prices eased and firmed on Thursday, April 4, after hitting their all-time high mark above $2,300 an ounce earlier in the session on expectations of lower interest rates from the US Federal Reserve this year, as investors expect more of clarity on the timing of the cuts amid the dovish stance.
At 10:04 a.m. EDT, spot gold was down 0.3 percent at $2,291.88 an ounce, after hitting a record high of $2,304.09 earlier in the day. U.S. gold futures were down 0.3 percent at $2,308.30. Spot silver fell 1.2 percent to $26.88 an ounce after hitting its highest since June 2021 — a near three-year high. Platinum rose 0.2 percent to $938.60 and palladium gained 1.4 percent to $1,028.50.
Read also: Gold, silver prices climb to a new peak after the speech of the chairman of the US Fed Jerome Powell. US dollar pulls back from 4-month high
What works for gold prices?
-Fed officials including US central bank chief Jerome Powell on Wednesday continued to focus on the need for more debate and data before interest rates are cut, a move markets expect to happen in June.
-Governor Powell in his comments yesterday mentioned that the interest rates have peaked for this cycle, however they will still look at the economic numbers and inflation trend before making any decision. Governor Powell believes that monetary policy is tight
-Data showed that the number of Americans filing new claims for unemployment benefits rose more than expected last week as labor market conditions eased. Focus now shifts to US March non-farm payrolls due on Friday, which could shed more light on the timing of the Fed’s first rate cut.
-Strong central bank and safe-haven buying amid rising geopolitical tensions has fueled demand for gold, helping push the price up more than 25 percent since October. Analysts said gold is very overbought and needs to correct to blow some foam as Fed cuts are priced in.
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Published: 04 Apr 2024, 21:43 IST