Gold rises to $2,124 per ounce and is approaching historical levels

During Tuesday’s trading session on March 5, gold experienced a 0.45% increase, reaching levels of $2,124 per ounce. This uptrend was supported by growing expectations of a potential interest rate cut by the Federal Reserve.

According to Fedwatch, a service that monitors forecasts for the Federal Reserve’s decisions, there is currently a 68% probability that the Federal Reserve will reduce interest rates in June 2024.

Despite this increase, gold remains below its peak level reached on December 4, 2023, when it reached $2,150 per ounce.

Last week, gold prices surged by approximately $50, with all gains occurring in the final two days of trading. This surge was attributed to weak data concerning spending in the manufacturing and construction sectors in the United States, coupled with a decrease in price pressures according to the central bank’s preferred inflation measure.