Tuesday’s increase in gold prices during European trade marked the third straight day of gains and nearly reached two-week highs as the dollar depreciated against its main competitors.
An early the United States interest rate reduce in March was made possible by failing US data and pessimistic statements made by Fed officials.
Following a two-week high at $2,070 due to weak US consumer spending data, gold prices rose 0.35% on Friday, marking the second consecutive profit, and then fell 0.6% to $2,065 an ounce, with a session low at $2,052.
Due to a drop in the US Treasury yields and the dollar, gold prices saw a weekly increase of 1.6% last week, marking the second consecutive week of gains.
Tuesday’s loss of more than 0.1% on the dollar index against a basket of key competitors was the third straight session of losses, and it nearly reached a five-month low at 101.43. ..
For holders of other currencies, dollar-denominated gold futures are more affordable when the dollar declines.
Numerous recent US data points—such as November’s consumer spending data—clearly demonstrated that inflation is decelerating in response to policy tightening.
In response to the data, prices for a United States interest rate reduce at the Fed meeting in March increased to 88%, while prices for one at the meeting in May decreased to 99.5%.