Gold extends its gains as US data supports bets of slowing interest rate hikes

Gold prices recorded their highest levels since March 2022 on Wednesday, as they continued to rise after weak US economic data reinforced bets on slowing the pace of raising US interest rates.

Spot gold rose 0.1% to $2,021.97 an ounce by 0925 GMT, while US gold futures settled at $2,038.70.

Analysts said that gold is in a position to continue gains and stay above the level of two thousand dollars, as expectations of falling interest rates reduce the opportunity cost of possessing gold that does not yield a return, and the precious metal is a hedge against inflation and economic uncertainty.

Gold prices jumped 2 percent on Tuesday after data showed job vacancies in the United States fell in February to the lowest level in nearly two years.

The dollar index was flat, but still near a two-month low, making bullion less expensive for buyers holding other currencies.

Gold recorded the highest price in the euro and the pound sterling in more than a week.

In Europe, the recovery of the eurozone accelerated last month, but the recovery was uneven across countries. A Reuters poll concluded that the European Central Bank could raise interest rates by 25 basis points at its May, June and July meetings.

While markets expect a pause in US interest rate hikes in May, Cleveland Fed President Loretta Mester said the central bank will likely make further rate hikes in the future, bringing the final rate to more than 5 percent.

As for other precious metals, silver fell 0.9 percent to $24.78 an ounce, while platinum rose 0.2 percent to $1019.44 and palladium rose 0.5 percent to $1463.81.