After maintaining its three rate cut forecast for this year, the gold price climbed above $2,200 per ounce in the market once again. This suggests that a recent rise in inflation did not alarm the Federal Reserve.
It rose to around $2,200 per ounce early on before losing nominal ground. For example, it has taught everyone a valuable lesson since mid-February due to long-standing support from things such as elevated geopolitical risks and central bank buying led by China.
Indeed, part of the rally was driven by expectations of US monetary policy easing which was confirmed by the Federal Reserve on Wednesday.
Spot gold hit $2,206.61 an ounce before slightly backtracking to end at $2,203.86 while silver prices increased along with those of platinum and palladium.
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The geopolitical situation is also very messy; several risks boost gold’s safe haven appeal as they make it a popular asset among investors who value safety. Russia appears to be gaining an advantage in the conflict in Ukraine. Ongoing hostilities between Israel and Hamas are disrupting global shipping routes. The upcoming US Presidential election at the end of this year could be highly significant for the markets.
Also Chinese purchases supported prices. Like central banks do likewise ordinary people are accumulating coins,gold bullions as well jewelry these days for safeguarding their wealth against years spent suffering from housing crashes and losses incurred through stock trading within this country.
Gold is still trading above its 100- and 200-day moving averages, according to BlackBull analysts. However, the 50-day moving average may provide a cap on former momentum.
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