Gold broke above $2.000, extending gains supported by a weaker dollar and U.S. bond yields, while weaker U.S. economic data boosted expectations for softer rate hikes amid fears of re-fueling inflationary pressures from rising oil prices.
Gold rose 1,7% to $2.017,89 an ounce, after hitting its highest level since March 9, 2022 at $2.024,79 earlier. U.S. gold futures gained 1,8 percent to $2.036,20.
Tracking precious metal gains, silver jumped 3,2% to $24,75 an ounce, platinum 2,7% to $1.011,95 and palladium 0,6% to $1.468,52.
"We're in this very positive backdrop for gold where we have the slowdown in economic data along with inflationary pressures that remain elevated," David Meger, director of metals trading at High Ridge Futures, told Reuters.
The dollar continued to post losses in international currency markets after data showed new US jobs fell to a near two-year low in February, while factory orders also fell.
“Technically, the price of gold is likely to remain strong and stabilize at the current level or even higher. The $2.050 level could act as an important resistance level and, if breached, prices could quickly shoot towards their all-time high,” notes Alexander Zumpfe, precious metals trader at Heraeus.
Markets now see about a 40% chance the Federal Reserve will raise interest rates by a quarter of a basis point in May, while about a 60% chance there will be a pause.
SOURCE: OT (link is external)