Gold is rising more than 1% this Monday, April 1, being driven by the prospects of the United States Federal Reserve being closer to starting to cut interest rates.
At the start of the week, and with several markets closed due to Easter Monday, gold rose 1.47% to $2,271.25 per ounce. This is a new record, after this commodity having touched 2,265.73 dollars per ounce during the morning.
The price index for household consumption expenditure accelerated by 2.5% in February when compared to the same period last year, despite an increase below the previous month. Now, the release of this index made the gold market more enthusiastic.
“It’s a really exciting time in gold,” said Joseph Cavatoni, market analyst at the World Gold Council, to “CNBC”. “Many market speculators are taking confidence and comfort from the Fed cuts,” he said. Many analysts expect the North American entity to reduce rates in May or June.
The Fed maintained its forecast of three interest rate cuts for this year, while the ECB could move forward with four cuts this year alone.
Gold gained more than 9% in March, being driven by the prospects for easing monetary policy and the worsening of geopolitical tensions in Ukraine and the Middle East, as well as purchases by central banks, particularly China.
Tags: Gold reaches alltime high prospect Fed interest rate cut
