On Friday, the gold price hovered around $2,030 per ounce. It seemed likely to end the week with its value largely unchanged. The strength of the US dollar and high Treasury yields prevented the gold price from rising. Furthermore, recent strong job reports in the US led people to believe that interest rates would not decrease any time soon.
During the week, Federal Reserve officials expressed their belief that it is not yet time to reduce interest rates. Specifically, Susan Collins, the President of the Boston Fed, stated they are satisfied with the current policy status. She also suggested that it might become appropriate to consider policy easing later in the year.
Investors have adjusted their expectations regarding the Federal Reserve lowering interest rates in March. Currently, they see less than a 20% chance of a rate cut occurring. This marks a significant shift from earlier in the year when they perceived a much greater likelihood.
Despite ongoing geopolitical tensions in the Middle East, which typically drive investors towards gold as a safe haven, the gold price did not experience an increase.