Gold races past $2,000/oz after weaker U.S. data

-


April 4 (Reuters) - Gold extended gains on Tuesday and crossed the key $2,000 level as the dollar and yields fell, while weaker U.S. economic data emboldened bets for slower rate hikes despite mounting concerns over oil-led inflation.


At 11:30 a.m. EDT (15:30 GMT), spot gold surged 1.7% to $2,017.89 per ounce, reaching its highest level since March 9, 2022 at $2,024.79 earlier. Meanwhile, U.S. gold futures rose by 1.8% to $2,036.20. Silver also gained, rising by 3.2% to $24.75 per ounce, platinum by 2.7% to $1,011.95, and palladium by 0.6% to $1,468.52, all buoyed by gold's upward momentum.

According to David Meger, director of metals trading at High Ridge Futures, gold is in a positive environment due to slowing economic data and persistent inflationary pressures. Furthermore, the dollar's decline, following weak U.S. job opening and factory order data, has made gold more attractive, especially to traders holding other currencies. In addition, gold's role as a preferred inflation hedge has been boosted by surging oil prices, which have helped it resist the impact of potential interest rate hikes.

Alexander Zumpfe, a precious metals dealer at Heraeus, believes that gold prices may continue to remain strong or even rise further, with the $2,050 mark acting as a crucial resistance level. However, Han Tan, chief market analyst at Exinity, warns that gold's recent gains could be undone by further rate hikes. The markets currently assign a 40% probability of the Federal Reserve raising interest rates by a quarter basis point in May, with a 60% chance of a pause.

Comments

Post a Comment

Popular posts from this blog

Amazon CEO Andy Jassy’s brutal message to remote workers refusing to come back to the office: ‘It’s probably not going to work out for you’

-
Image
Andy Jassy, the CEO of Amazon, appears to have lost patience with remote employees who refuse to return to the workplace. Some of the biggest corporations in America have struggled with the return to work issue due to employees who want to maintain their pandemic-era flexibility, including Meta, Disney, and Starbucks. Unfortunately for Amazon's executives, calling employees back to work has generated a lot of controversy. And it appears the Amazon CEO has run out of options after receiving everything from criticism to staff petitions. Jassy is said to have laid down the challenge at a fireside chat known as a "fishbowl" earlier this month, implying that if employees didn't return to their desks they would be fired. Jassy was heard saying, "It's past the time to disagree and commit," in an audio that Insider was able to secure. We are returning to the office at least three days a week, so it's not appropriate for some of our teammates to be in three d...
Read more

Tesla's Feeling the Pain of Lower Pricing, but This EV Maker Isn't. Is the Stock a Buy?

-
Image
Purchasing an electric car is now more affordable than it has ever been. Global automakers are cutting the cost of their electric vehicles and releasing more affordable models. They've noticed the effect on their bottom line. Even the market leader in electric vehicles with the strongest brand, Tesla (TSLA 2.22%), was forced to lower pricing. It now intends to produce a car in Germany for 25,000 euros, or somewhat less than $27,000, according to a Reuters story. Tesla has seen a decline in profit margins due to decreased prices. Compared to the same period previous year, its cost of goods consumed 7.2% more of its sales in the most recent quarter. Yet, BYD (BYDDY -0.21%), its largest opponent in the EV production market, has not encountered the same difficulty. In fact, over the same time frame, it was able to raise its gross margin on auto sales by three percentage points. And right now, the stock is available for a very attractive price The soon-to-be biggest EV maker BYD is grow...
Read more

Here's why I'm finally giving up my iPhone 12 Pro Max in favor of the iPhone 15 Ultra.

-
Image
 Yes, I get to use the trendiest and best phones every day for work, but when it comes to purchasing a new phone for myself, I'm incredibly fussy (and frugal). In actuality, I've had the reliable iPhone 12 Pro Max for about three years, and only now has it begun to age poorly.  For instance, I've seen that after numerous iOS updates, the battery life isn't as excellent as it once was and that sometimes apps take a long time to start or crash for no apparent reason. But the camera is where I have the most issues. It's fine, but the 48MP primary sensor on the iPhone 14 Pro Max's has made me envious of its quality. but not sufficient to improve. Periscope zoom is coming  I must admit that I sigh each time I use my iPhone 12 Pro Max's 2.5 optical zoom feature. Particularly considering that the Pixel 7 Pro has a 5x periscope zoom and phones like the Galaxy S23 Ultra provide two telephoto lenses with magnifications of 3x and 10x.  A lighter titanium design The iPh...
Read more