Gold inches towards $2,000

Apr 5, 2023 thejournalbiz

Gold edged slightly higher, hovering above $2,000 an ounce!

Senior traders are assessing the Federal Reserve’s interest-rate path following weaker-than-expected economic data from the US.

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Gold hovering above $2,000!!

Gold edged slightly higher as traders assessed the Federal Reserve’s interest-rate path following weaker-than-expected economic data from the US.#gold #receesion pic.twitter.com/hJ5JIeJgvW

— The_Journalbiz (@the_journalbiz) April 5, 2023

Bloomberg chart on gold

The US service sector expanded in March at a much slower pace than projected on considerably softer new orders growth and business activity. Companies added fewer jobs than forecast while wage growth slowed, underscoring labor demand that’s showing some signs of cooling. The dollar and Treasuries advanced in response as recession concerns resurfaced. That weighed on bullion as it’s priced in the greenback.

Still, the precious metals remain above the key level, suggesting continued demand from investors seeking safety on the back of elevated inflation, a weakening labor market, tight liquidity and brittle credit.

Bullion Eyes Record High Set in 2020 | Gold stays above $2,000 after softer US economic data

“We have always viewed gold as a hedge in a portfolio context, and its safe-haven qualities have shined through again during the latest market turbulence,” UBS Group AG strategists including Giovanni Staunovo said in a note. The analysts see bullion eventually breaking its previous record to test $2,200 an ounce by early 2024.