On Thursday, the price of gold saw an increase, reaching approximately $2,010 per ounce. This rise in gold’s price happened at the same time as a small decrease in the value of the dollar and Treasury yields. However, gold’s price did not increase significantly. It remained close to its lowest level in the past five weeks. The main reason for this limited increase in gold’s price is the recent data showing stronger US retail sales. This data led to people thinking less likely that the interest rates would go down.
Officials from the Federal Reserve, including Fed Governor Christopher Waller, have recently made statements. They spoke against the idea of quickly reducing interest rates. Their comments have influenced the market’s expectations. Now, people believe there is a lower chance of a rate cut by the Federal Reserve in March. This belief has decreased to a 53.8% chance, down from 63.1%. The CME’s FedWatch Tool provides these percentages.
Meanwhile, in Europe, Christine Lagarde, who is the President of the European Central Bank, gave an interview to Bloomberg. She mentioned that many people might support a rate cut in the summer. However, she also made it clear that any decisions about rate cuts in the future will depend on the upcoming economic data.
Elsewhere, attention is on the Middle East. People are focusing on recent events, especially the United States carrying out new strikes on Houthi targets in Yemen. These developments are of interest to many investors.