The price of gold reached an all-time high in trading on Wednesday and continues to rise.
Quotes for April contracts on the New York Stock Exchange Comex on Thursday rose by 0.3% to $2163.9 per ounce. The previous trading session ended at a record high of $2158.2 per ounce.
The rally is supported by a weaker US dollar and lower government bond yields, Trading Economics notes. This, in turn, is due to hopes that the Federal Reserve will soon begin to cut interest rates amid the deteriorating situation in the country’s economy. On Wednesday, Federal Reserve Chairman Jerome Powell said that it would probably be advisable to ease monetary policy “at some point this year.”
Based on futures quotes on the rate, traders currently estimate a 70% probability of a Fed rate cut in June.
“Gold is likely to move higher as bullish sentiment remains dominant,” said Tai Wong, an independent metals trader based in New York. – “However, it may take some time for the market to digest Powell’s comments and also to see Friday’s employment report.
Experts expect that the number of jobs in the US economy in February increased by 200 thousand (after an increase of 353 thousand the previous month), and unemployment remained at 3.7%.
