The rise in gold prices may be driven by geopolitical tensions in Ukraine and the Middle East, as well as stubborn global inflation. Despite concerns about the delay in the Federal Reserve's easing of US interest rates, investors have focused on protecting themselves against rising price pressures. Now, market attention will turn to the upcoming release of the Federal Open Market Committee (FOMC) meeting minutes and US consumer price index data for more information on the direction of interest rates.
According to gold trading platforms, the gold price has risen by $290.42 per ounce, or 14.08%, since the beginning of 2024, according to trading on the contract for difference (CFD) which tracks the benchmark market for this commodity. Gold is expected to trade at $2273.85 per ounce by the end of this quarter, according to global macroeconomic models and analyst expectations. Looking ahead, we expect it to trade at $2500 per ounce in 12 months.
Amid this performance, the yield on 10-year US Treasury notes fell to 4.37% on Tuesday, after reaching 4.46% on Monday, the highest level in four and a half months. Overall, traders are preparing for the release of US inflation today to adjust their bets on the timing of a US rate cut by the Federal Reserve. Currently, the probability of a cut in June is around 57%, down from 60% earlier in the month. Last week, hawkish comments from several Fed officials, coupled with strong employment and manufacturing data, raised investor concerns that interest rates will need to stay higher for longer. Policymakers, including Fed Chairman Powell, suggest that a rate cut on federal funds this year may be appropriate, but there is no need to rush it as the Fed needs more confidence that inflation is moving sustainably back to 2%.
According to gold trading platforms, the gold price has risen by $290.42 per ounce, or 14.08%, since the beginning of 2024, according to trading on the contract for difference (CFD) which tracks the benchmark market for this commodity. Gold is expected to trade at $2273.85 per ounce by the end of this quarter, according to global macroeconomic models and analyst expectations. Looking ahead, we expect it to trade at $2500 per ounce in 12 months.
Amid this performance, the yield on 10-year US Treasury notes fell to 4.37% on Tuesday, after reaching 4.46% on Monday, the highest level in four and a half months. Overall, traders are preparing for the release of US inflation today to adjust their bets on the timing of a US rate cut by the Federal Reserve. Currently, the probability of a cut in June is around 57%, down from 60% earlier in the month. Last week, hawkish comments from several Fed officials, coupled with strong employment and manufacturing data, raised investor concerns that interest rates will need to stay higher for longer. Policymakers, including Fed Chairman Powell, suggest that a rate cut on federal funds this year may be appropriate, but there is no need to rush it as the Fed needs more confidence that inflation is moving sustainably back to 2%.
✔️TP 2340
✔️TP 2330
❌SL 2358