Gold prices at a high

5 Apr 2023 , 09:04 AM

Gold prices traded steadily above the important $2,000 barrier on Wednesday as the dollar weakened as fears that the Federal Reserve would change its monetary policy direction were stoked by disappointing U.S. economic data. Gold prices were hovering near record highs last seen in 2020.

Spot gold was unchanged at $2,020.39 per ounce. At $2,037.20, U.S. gold futures remained stable.

The dollar index fell by 0.1%, lowering the price of bullion for customers using other currencies.

After yet another wave of negative U.S. economic data suggested a slowing economy and boosted expectations of a less-aggressive Fed policy, gold prices increased 2% to reach their highest level in more than a year on Tuesday.

According to data, the number of U.S. job opportunities in February fell to its lowest level in almost two years, indicating a slowing of the labour market. A different survey revealed that new orders for products made in the United States decreased for a second consecutive month in February.

The Fed is expected to stop hiking interest rates in the summer and begin lowering them.

Nonetheless, despite the fact that the economy appears to be slowing down, Federal Reserve Bank of Cleveland President Loretta Mester stated that the U.S. central bank is still likely to raise interest rates in the future.

Although historically gold has been seen as a hedge against inflation and economic turbulence, higher interest rates have lessened the appeal of non-yielding bullion.

Spot silver decreased by 0.1% to $24.99 per ounce, while platinum and palladium both increased by 0.2% to $1,020.47 and $1,458.51, respectively.

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