Gold Prices Achieve Highest Monthly Performance in Three Years

On Thursday, March 28th, gold prices soared to unprecedented heights, marking their best monthly performance in three years, buoyed by anticipation of interest rate cuts and robust demand for safe-haven assets.

Gold futures surged by approximately 1.2% to settle at $2,238.4 per ounce by the end of the session.

Meanwhile, the spot delivery price of the precious metal climbed by 1.2%, reaching $2,220.8 per ounce, marking its strongest monthly performance since July 2020, with a remarkable 9% increase. This also marked the second consecutive quarterly gain.

Market attention is now focused on the release of data on the Personal Consumption Expenditures Price Index in the United States later today, which serves as the Federal Reserve’s preferred gauge of inflation.

Current market sentiment suggests a 64% probability of a rate cut in June.

A commodity analyst at TD Securities remarked that gold prices could experience further upticks if market expectations lean towards more aggressive interest rate cuts by the Federal Reserve. He also noted the potential for gold to sustain these gains. However, he cautioned that signs of buying exhaustion are beginning to emerge in the very near term.