13 April (Reuters) – The U.S. Federal Reserve (Fed) may pause or slow down the pace of rate hikes on Friday, boosted by expectations of a mild recession this year. Prices remained strongly supported above $2,000.
Spot gold rose 0.6% to $2,027.40 an ounce by 1010 GMT, down about $40 from its 2020 record high. US gold futures rose 0.8% to $2,040.30.
Gold gained support after Wednesday’s data showed the U.S. Consumer Price Index (CPI) rose 0.1% last month after rising 0.4% in February, the Fed is nearing the end of its tightening cycle. I raised my expectations.
Those forecasts were bolstered by the minutes of the Fed’s March meeting, where several policymakers considered a moratorium on rate hikes and predicted recent stress in the banking sector would push the economy toward recession. was shown.
Independent analyst Ross Norman says traders are nervous about a prolonged recession and banking crisis, but gold is likely to continue to be bid, but tends to profit from high prices. is likely to continue.
A safe-haven asset, gold tends to profit in times of economic or financial uncertainty, but low interest rates also add to its appeal, as it does not accrue interest.
The dollar is near its lowest level since early February, making gold cheaper for holders of other currencies.
“Markets are still pricing in a 65% chance of a rate hike in May, but hopes are rising that the Fed is nearing the end of its rate-hiking cycle,” said Fiona Cincotta, senior financial markets analyst at City Index. there is,” he said. note.
Rising hopes of a dovish Fed turnaround, recession fears and a weaker dollar are pushing gold higher, Cincotta added, which could help the precious metal hit new yearly highs. rice field.
Spot silver rose 0.4% to $25.58 per ounce, platinum rose 0.9% to $1,024.71 and palladium fell 0.2% to $1,457.78.
Reported by Seher Dareen and Kavya Guduru of Bangalore.Edited by Jason Neely
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