Gold Flying and Making New All Time Highs

By Pete Southern in Gold and Oil News | March 30, 2024 10:37 | Tags: , , ,

During Thursday’s trading on US sessions, an extraordinary event for Gold bulls took place. A gold price was hit of $2230 per ounce, gold set a fresh all-time high.

The primary underlying strength of these rapid gains is the increased anticipation of numerous interest rate reductions from the world’s foremost central banks, mainly driven by the Federal Reserve, by the end of 2024.

The markets have become enthusiastic about gold not without reasoning – the US Federal Reserve is anticipated to reduce the rate three times before end of this year. Austan Goolsbee, President of the Chicago Fed, which is often considered as one of the most dovish, agrees with this, adding though, that prior to any monetary shifts, there must be unequivocal testimony that the inflational tailspin persists.

This value jump had a dramatic impact on the mining sector. An obvious example is the VanEck Gold Miners ETF , which soared by 20% per month.

Currently, the promising future of gold prices is one of the considerable reasons investors are going wild for it. However, after the close-of-business declaration from Fed Governor Chris Waller, was they may assume an alternative stance. On Wednesday, in a late gathering, he declared that the investigation of the policy rate may be bypassed: top indicators demonstrate that there is no need for this. Instead, our mission is to promote a restrictive monetary strategy in order to reasonably hit the stationary inflation threshold of 2%. Of course, Waller’s statement, operating, more or less, within this policy’s hawkish accord, led to increased demand for actions in US Dollars and a surge in the stock exchange.

The U.S. Dollar Index eased off down from 104.50, nearing its peak for several weeks and then creeping back up toward 104.20. The U.S. Treasury yield has risen slightly, with a three-month rise to 4.25 percent. Thus, when considering a new gold purchase, it is recommended to be cautious at these high levels.

Pete Southern About Pete Southern
Pete Southern is an active trader, chartist and writer for market blogs. He is currently technical analysis contributor and admin at this here blog.

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