On Friday, the price of gold remained above $2,020 per ounce. It is on track to end the week with gains. The reasons for this increase include the dollar becoming weaker and more investors turning to gold as a secure investment option.
This situation arises as investors feel uncertain about when the Federal Reserve will lower interest rates and by how much. These doubts stem from the US economy sending mixed signals.
Additionally, Christopher Waller, who serves as a Governor of the Federal Reserve, made comments on Thursday night. He suggested that the Federal Reserve should wait a bit longer, at least a few months, before deciding to reduce interest rates. He wants to check if the high inflation report from January was just an outlier. Waller believes that the Federal Reserve is still on its way to achieving its inflation goal.
He also pointed out that a premature action by the Federal Reserve might reverse the progress it has made in controlling inflation. Such a move could lead to significant problems for the economy.
Meanwhile, in other parts of the world, specifically in the Middle East, tensions are escalating. These tensions have increased the demand for gold price. The Houthi militants have claimed responsibility for attacking several commercial ships over the week.