GOLD slight increase

The gold market is in a neutral environment as the price continues to maintain above 2,000 USD/ounce and cannot break out of the current range. World gold price stood at 2,026 USD/ounce, a slight increase of 6 USD/ounce compared to the same hour yesterday morning. The gold market is in a neutral environment as the price continues to maintain above 2,000 USD/ounce and cannot break out of the current range.

Recently, many forecasts suggest that the US Federal Reserve (Fed) will not lower interest rates at its meeting in March and will only lower interest rates from mid-2024 at the earliest. With quite hawkish statements from Fed officials , financial markets have tempered expectations that the Fed is ready to cut interest rates.

This week, there are two economic reports that could change Fed interest rate expectations. On Thursday, the US Department of Commerce will release a preliminary report on gross domestic product (GDP) for the fourth quarter of 2023. Many experts predict that US GDP will increase by 1.7%, the lowest increase since the 0.6% decrease recorded in the second quarter of 2022.

In addition to economic data, investors are also waiting for the decisions of major central banks such as the Bank of Japan, the Bank of Canada and the European Central Bank. The decisions of these banks are expected to have an impact on the direction of both the greenback and gold.

Although it is in a downward trend and moving sideways in the short term, experts believe that gold prices are benefiting from geopolitical instability in the world and conflicts between two economic powers, the US and China. Gold prices are forecast to increase rapidly in the second half of 2024.