Gold prices see WoW increases amid uncertainty over Fed interest rate decisions
(MENAFN) Gold prices marked a weekly upturn, displaying resilience amidst mixed performances from the US dollar and Treasury bond yields. The uncertainty surrounding the timeline for potential interest rate cuts by the US Federal Reserve did not deter gold's positive trajectory.
Brian Lan, from gold Silver Central in Singapore, provided insights into the market sentiment, stating that while a rate cut by the Federal Reserve in March seems unlikely, traders are expressing confidence in the likelihood of interest rate reductions in the subsequent period. Lan noted that these sentiments have been favorable for gold, contributing to its weekly gain.
In spot transactions, gold observed a weekly increase of 1.05 percent, reaching USD2,039.76 per ounce. The appeal of gold, known for its non-yielding nature, tends to be enhanced in periods of low interest rates, as it stands as a non-interest-bearing asset.
A separate report highlighted a faster-than-expected growth in US worker productivity during the fourth quarter. Concurrently, concerns about the regional banking sector in the United States have led to increased demand for safe-haven assets, with both bullion and Treasuries being sought as secure investments.
The comments from US Federal Reserve Chairman Jerome Powell further added to the nuanced market dynamics. Powell indicated a cautious approach, stepping back from the notion of lowering interest rates in the spring while expressing confidence in inflation converging toward the target range of two percent. The complex interplay of these factors underscores the intricate landscape influencing gold prices and the broader market outlook.
MENAFN04022024000045015682ID1107806757
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.