Speculation of the fed rate and weak dollars keep gold floating
The US dollar remains under pressure and trades low points for almost several months, because economic data the growing uncertainty signals. The Consumer Sentiment Index of the University of Michigan for March fell to 57.9, the lowest lecture since November 2022. Moreover, five -year expectations of consumer inflation increased to 3.9%, so that the economic prospects further cloud.
The US Dollar Index (DXY) floats near 103.70 and reflects a weaker investor confidence. This has made gold more attractive for traders who are looking for a cover against currency debit.
At the same time, the expectations of a federal reserve rate reduce. According to the CME Fedwatch tool, there is now a 75% chance that the FED will lower the rates by June. Lower interest rates usually increase gold prices because they reduce the opportunity costs of keeping non-return activa.
Geopolitical risks and trade tensions Fuel safe haven requirement
Gold’s safe port-starting power remains strong in the midst of rising geopolitical instability. During the weekend, the Houthi rebels of Yemen launched a large attack on American naval forces in the Red Sea, which caused the constant American military action. Concern about the disruptions of global trade has contributed to the support of Gold.
Moreover, American trade policy feeds economic uncertainty. The decision of former President Donald Trump to maintain a rate of 25% on the Australian aluminum and steel has expressed concern about global commercial relations.
These developments have reinforced Gold’s demand because investors are looking for stability in uncertain times.