The market currently believes that the probability of a rate cut in March has dropped to below 50%. Expectations are down significantly compared to last week. The gold market continued to trade in a tight range as investors wavered over the timing of the Federal Reserve's interest rate cuts this year.
A hawkish shift in U.S. monetary policy sent gold prices to a five-week low last week, just above $2,000 an ounce. Although gold prices have rebounded from recent lows, the precious metal is still poised to end last week lower. Spot gold closed at $2,029.26 per ounce last Friday, down 0.94% on the week.
U.S. data last week showed an unexpected drop in initial jobless claims and better-than-expected retail sales. Gold prices in London were little changed as investors mulled the data. And as the economy strengthens, the Federal Reserve is looking for signs of weakness and considering easing monetary policy. The price of gold usually moves in the opposite direction to interest rates. Traders have pared back bets on a U.S. Federal Reserve pivot, putting the chance of a rate cut in March at around 52%, down from nearly 80% at the end of last week.
From different times, we can see that gold has two trends.
A hawkish shift in U.S. monetary policy sent gold prices to a five-week low last week, just above $2,000 an ounce. Although gold prices have rebounded from recent lows, the precious metal is still poised to end last week lower. Spot gold closed at $2,029.26 per ounce last Friday, down 0.94% on the week.
U.S. data last week showed an unexpected drop in initial jobless claims and better-than-expected retail sales. Gold prices in London were little changed as investors mulled the data. And as the economy strengthens, the Federal Reserve is looking for signs of weakness and considering easing monetary policy. The price of gold usually moves in the opposite direction to interest rates. Traders have pared back bets on a U.S. Federal Reserve pivot, putting the chance of a rate cut in March at around 52%, down from nearly 80% at the end of last week.
From different times, we can see that gold has two trends.
