On the first day of trading in the new year, gold price increase. It reached $2,070 per ounce. Before this rise, the price of gold had been dropping for two days straight. Now, many investors believe that the US Federal Reserve will start to reduce interest rates this year.
The expectations in the market are quite strong. Nearly 90% of the people who invest and work in the market think that the US central bank might lower interest rates as soon as March. This situation has sparked a lot of discussion among experts. These analysts are trying to figure out just how much the Federal Reserve will need to lower the rates.
Traders are now focusing on some important data coming from the US economy. They are waiting for information about job openings and nonfarm payrolls. They are also eager to see what was discussed at the Federal Reserve’s meeting in December. The minutes from that meeting will provide valuable insights about gold price increase.
At the same time, things are different in Europe. Investors there do not expect the European Central Bank and the Bank of England to reduce borrowing costs quickly. Both of these European banks have chosen to keep interest rates high for a longer period than usual.
In other parts of the world, the financial situation presents unique challenges. The Bank of Japan is currently under pressure to stop its policy of having negative interest rates. In contrast, the People’s Bank of China is likely to make its monetary policies more relaxed. They want to do this to support and encourage growth in China’s economy.