Gold approaches $2,020 on weaker US dollar, retreating T-yields

Gold unusually surged on Tuesday, ahead of the Fed’s interest rate release, amid expectations that the US central bank will raise the basic interest rate by 25 points, a rise that came due to the downside pressures on the US dollar.
The decline in US yields, on Tuesday, boosted gold, which jumped toward $2,020 posting the highest daily close in three weeks. Silver climbed from $24.60 to $25.35. Cryptocurrencies soared, with BTC/USD rising 3.50% to $28,700.

The strength of the bullish momentum shown by the US dollar was also helped by expectations that appeared in parallel with expectations of a Fed rate hike indicating the possibility that this will be the last time that the Fed raises interest rates in the current cycle of quantitative tightening.

Gold futures rose to 2015 dollars an ounce, compared to the daily closing recorded in the last session, in which it recorded a decline to 1982 dollars an ounce.

The lowest level for the precious metal in Tuesday’s session was $1978, compared to the highest levels of $2019. The US dollar has been declining since the beginning of US trading in the global currency market, affected by renewed fears of a banking crisis, just one day after the announcement of JPMorgan Chase’s acquisition of First Republic Bank.

US data also negatively impacted the dollar after it shed light on the decline in the employment opportunity index last March, and the record of factory orders in the United States, a lower-than-expected reading.