2 January 2024
Gold prices saw an upbeat start in 2024, fueled by investor optimism over a potential US Federal Reserve rate cut. The precious metal’s spot price climbed 0.6% to $2,074.40 per ounce, marking a 13% increase in 2023 and its first annual gain since 2020. This surge is attributed to the market’s expectation that the Fed will lower rates sooner rather than later. Market analysts point out that a continued slowdown in inflation and economic activity could further bolster gold’s position, especially if Treasury yields drop and the dollar softens. The week is crucial for gold investors, with a focus on upcoming economic data, including US job openings and December non-farm payrolls, and the minutes from the last Fed meeting. These factors, combined with technical indicators, suggest that gold may retest support levels in the near term. Meanwhile, other precious metals like silver, palladium, and platinum also registered gains.