Gold prices surged to historic highs following comments from Fed Chair Jerome Powell, which were perceived as bearish. Expectations of an imminent interest rate cut by the Fed in June further fueled the attractiveness of gold futures. Several US banks and institutions now project gold to surpass $2000 and potentially reach $2300-$2500 this year.
Gold Prices
Gold prices jumped by 1.4% to reach $2265 per ounce, setting a new record high, with a session low of $2234. In the first quarter, gold prices experienced a 7.8% rally, marking the second consecutive quarterly gain. March alone witnessed a notable increase of 9.3% in gold prices, the largest monthly surge since July 2020.
Powell's Statements
Fed Chair Jerome Powell, after reviewing inflation data, emphasized that while current numbers align with expectations, the Fed remains cautious and will not overreact to inflation easing compared to last year. Powell's remarks indicate a consistent stance with previous statements, suggesting no deviation from the Fed's forecast of three interest rate cuts this year.
Comments