Advertisements
Home Spot Gold Gold Price Climbs Despite Lingering Below All-Time Highs

Gold Price Climbs Despite Lingering Below All-Time Highs

by anna

On Monday, the price of gold experienced an ascent, albeit remaining below the significant all-time high of $2,265. The precious metal displayed a slight deceleration in momentum, yet retained a positive performance of 0.30% for the day. As of the latest update, XAU/USD was trading at $2,240 after reaching a daily low of $2,228.

In the United States (US), business activity witnessed an uptick in March, as reported by both the Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers Index (PMI) and S&P Global. While the former surpassed expectations and outpaced February’s figures, the latter saw a slight cooling but maintained its position in expansionary territory. These optimistic indicators, coupled with a robust economic outlook in the US, may deter the Federal Reserve (Fed) from considering interest rate cuts.

Advertisements

Marking its first expansion since September 2022, the ISM Manufacturing PMI contributed to a rise in US Treasury bond yields, presenting a challenge for gold, which lacks yield. Investors were incentivized to capitalize on profits in gold and shift towards US treasuries, which become more attractive amid expectations of rising interest rates.

Advertisements

The US Dollar Index (DXY), a gauge of the American currency’s strength against six other major currencies, stood at 104.99, registering a gain of 0.44%. This uptick in the dollar’s value acted as a limiting factor for the advance of XAU/USD, exerting pressure on the precious metal’s upward movement.

Advertisements

In summary, despite gold’s upward trajectory, its failure to breach all-time highs signifies a degree of resistance in the market. Factors such as improving business activity in the US and the prospect of higher interest rates pose challenges for gold’s performance, despite its ongoing appeal as a safe-haven asset. Investors will continue to monitor economic indicators and central bank policies for further cues regarding gold’s future trajectory.

Advertisements
Advertisements

You may also like

Lriko logo

Lriko is a gold portal website, the main columns include gold pricespot goldsilver pricespot silvergold futures, nonfarm payroll, gold basics, gold industry news, etc.

© 2023 Copyright  lriko.com