Spot gold prices jumped by 0.3% to $2,043.80 per ounce by 0615 GMT. The rally represents the fourth consecutive day the yellow metal has seen a price increase. On Wednesday, bullion reached a two-week high of $2,055.89. However, US gold futures fell by 0.3% to $2,061.20.
On the other hand, spot silver fell 0.2% to $22.88 per ounce. Meanwhile, platinum dropped 0.2% to $915.73, and palladium edged 0.1% lower to $975.56.
Also Read: Gold Price Surges Past $2025; Here is How High It Can Go in February.
After a plummet in October, the yellow metal’s prices have gradually climbed over the past few months.
Why is Gold going up?
The recent rally is most likely due to expectations of the Federal Reserve to cut interest rates. However, the Fed has pushed back against the likelihood of a cut in March. Nonetheless, the central bank is confident inflation rates will come to the 2% target.
According to Jigar Trivedi, an analyst at Reliance Securities, the Fed has ‘kept the window open for interest rate cuts, just not so much for one in March, keeping gold supported.‘
The Fed left interest rates unchanged after its most recent meeting. Traders anticipate 142 basis points (bps) of Fed rate cuts this year. While speaking on the possibility of rate cuts, Fed chair Jerome Powell stated, ‘I don’t think it’s likely that the committee will reach a level of confidence by the time of the March meeting.‘
Also Read: BRICS: JP Morgan Predicts Future Gold Price
According to a recent report by JPMorgan, gold prices could dip before reaching new heights. Specifically, it forecasted a continued surge to the $2300 level at the concluding months of this year. According to the financial institution, rate cuts and falling US real yields are driving gold’s growth.
