Dear clients,
In volatile trading on Monday, gold prices initially fell 1% but reversed course and jumped to their highest level since March 2022 at $2009,59 as investors pondered the impact of measures taken by several central banks to contain the banking crisis and stabilize global markets. financial markets.
Gold prices slipped on Tuesday ahead of the Federal Reserve’s policy meeting as expectations rise that the US central bank will slow down its monetary tightening given the turmoil in the banking sector.
A pause in rate hikes could bring gold back above $2000, experts say, but it will need a lower dot chart and a dovish press conference for it to hold those gains. Despite the fact that banking regulators are rushing to strengthen market confidence, the uncertain macroeconomic environment continues to encourage purchases in gold.
Gold is considered a safe asset in times of financial uncertainty, and lower interest rates make unprofitable bars more attractive by lowering the opportunity cost of holding them.
In December last year, Bank of America analysts already predicted a rise in gold prices above $2,000, but the calculation was made for the second half of 2023.
