internationalismgold priceIt reached a new high on Thursday (28th). The spot price of gold in New York rose above US$2,200 a pound, surpassing last week’s record and its best monthly performance in more than three years. The rally was mainly driven by market bets on interest rate cuts by the US Federal Reserve (Fed) and geopolitical tensions that are stimulating safe-haven demand. Oil prices rose nearly 2% on Thursday on hopes of tighter supplies, closing at their highest in a month and rising as much as 16% in the first quarter.
The spot price of gold in New York rose 1.6% on Thursday to close at $2,229.87 per pound, breaking the $2,200 level, according to Bloomberg News quotes. Gold prices rose more than 9% in March, the best monthly performance since July 2020 and two consecutive quarters of increases.
Daniel Ghaly, commodities strategist at TD Securities, said gold prices were boosted by traders adjusting positions ahead of the Easter holiday and increasing trading before the end of the month and quarter. He said gold could rise further if the market starts expecting deeper rate cuts from the Fed, although he sees signs of buying slowing down recently.
Another reason for the rise in gold prices is that “global geopolitical tensions remain tense,” said Everett Millman, chief market analyst at Gainesville Coins, which promptedinvestPeople buy gold as a neutral reserve asset.
In their latest analysis report, UBS analysts Wayne Gordon and Giovanni Stanovo reminded that unfavorable factors such as interest rates remaining high, low stock market volatility and a strong US dollar have recently contributed to the rise in gold prices. Has not been disrupted, so gold prices should be cautious. The trend after this is doubtful.
The US Personal Consumption Expenditure (PCE) Price Index will be released today, which will help investors assess the Fed’s upcoming policy stance. According to CME Group’s FedWatch tool, traders currently see a 64% chance of a rate cut by the Fed in June.
In terms of oil prices, US West Texas crude futures rose 2.2% to US$83.17 a barrel on Thursday, the highest settlement price in more than a week. Brent crude futures rose 1.6% to $87.48 a barrel.
OilThe Organization of the Petroleum Exporting Countries and its partners (OPEC+) extended a deal to cut oil production by about 2 million barrels per day until the end of June, supporting expectations that global stockpiles will be drawn down. Coupled with continued attacks on Russian energy infrastructure by Ukraine and a decline in the number of oil drilling rigs in the United States, a number of factors have tightened the outlook for crude oil supplies.
Most investors believe OPEC+ is unlikely to make any changes to oil production policy before holding a formal ministerial meeting in June.
finance(tagstotranslate)gold price