On Thursday, the price of gold climbed closer to $2,030 for an ounce. This increase marked the sixth consecutive day of gains for gold. The reason for this rise is the drop in the dollar’s value. Many are uncertain about the future of interest rates in the United States.
The minutes from the most recent Federal Reserve meeting revealed something important. The officials there are being very careful. They don’t want to lower interest rates too quickly. They believe it might be too early to start making borrowing money cheaper.
Now, most people who trade have stopped expecting the Federal Reserve to reduce interest rates in March and May. Yet, they are hopeful that the first reduction will occur in June. They think there is a 53% chance that the interest rates will decrease by 0.25%.
Investors are now looking forward to the flash PMI reports. These reports, due on Thursday, will share new information. They will tell us how well the private sector in the United States is doing this month.
Additionally, the demand for gold as a safe investment has gone up. This is because the tensions in the Middle East are getting worse. People are looking for secure places to put their money, and gold is one of those places.