Gold prices continue to rise, updating their historic maximum and exceeding $ 2100 for an ounce. Precious metal has become more attractive to investors against the background of expectations of reducing rates by central banks.
On Monday, December 4, gold prices reached a record level of $ 2111.39 for an ounce. According to analysts, investors choose gold as a non -level asset, especially by looking at economic data that can affect the decrease in interest rates.
Employment reports are expected to be a key factor for analysts and traders. Its results can determine the further policy of the federal reserve system (Fed). If the data meets expectations, there may be a question about further reduction of rates in 2024.
"Given the future presidential election in the United States in 2024, the Fed will probably avoid actions that can be perceived as the support of any candidate, which allows us not to wait for a serious surprise and a further approach based on data," said Bruno Schneler, Managing Director of Invico Asset.
Futures currently provide for the likelihood of 60% of the Fed rate in March, and predict the reduction of rates by 135 base points in 2024. Now the Fed rates are at the level of 5.25-5.50%.
"Since June, we expect the Fed to reduce the rates by 25 BP per quarter, until it reaches the final rate of 3% in 2026," - said the Global economist Bofa Claudio Irigoyen.
