The price of gold jumped by 1%, reaching its highest level since March 21, when it hit a new record high.
The precious metal is supported by the negative dynamics of the US currency against the background of increased expectations of easing the Fed's monetary policy at the June meeting. Last week, Fed policymakers said they still expect three interest rate cuts by the end of 2024, despite recent high inflation figures. The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.20% to 104.01.
Investors are also preparing for the publication of US data, which may affect the timing of the Fed's interest rate cut. In the coming days investors will receive reports on durable goods orders, the final estimate of GDP for the fourth quarter of 2024 and weekly statistics on initial jobless claims. However, the key event of this week will be the publication of the February report on personal income and expenses of Americans (it will be released on Friday). This report includes the core personal consumption expenditure price index, the Fed's preferred inflation indicator. Economists expect the index to rise by 0.3% compared to +0.4% in January. On an annual basis, the index is expected to show an increase of 4.8%, unchanged from January. This will confirm that the path to normalizing price growth will be long and bumpy.
The focus of market participants' attention also remains on geopolitical risks stemming from the contracted Russia-Ukraine war and concerns about whether the UN resolution will lead to an actual cease-fire in the Gaza Strip