Gold News – 02.May.2024

Gold News

Gold Futures : Gold prices increased by 0.45% to $2,321.4 per troy ounce, with a rebound from a four-week low, following softer-than-expected remarks from the U.S. Federal Reserve.

MUFG’s Forecast : MUFG has a strong bullish stance on gold, predicting a year-end price of $2,350 per ounce, which is now considered a modest estimate.

Supportive Factors for Gold :

Potential Federal Reserve interest rate cuts

Strong demand from central banks

Gold’s status as a safe-haven asset amid geopolitical tensions

Federal Reserve’s Position : The Fed kept interest rates steady, with Chair Jerome Powell indicating that a rate hike is unlikely as the next move.

Inflation Outlook : Central bankers are looking for more evidence of declining inflation, despite projections showing a decrease; however, there’s less confidence in this forecast now.

Market Expectations : Traders have reduced expectations for the Fed’s rate cuts due to strong economic data and ongoing inflation concerns.

Copper and Aluminum Prices : Copper prices rose by 0.7% to $9,966 per ton, while aluminum prices remained nearly unchanged at $2,586.5 per ton.

Copper’s Decarbonization Role: Copper is crucial for decarbonization, with high demand due to green-transition efforts and a recovery in manufacturing.

Upcoming Economic Report : Investors are anticipating the U.S. nonfarm payrolls report, which could influence market expectations and Federal Reserve decisions.

Author : Arman Shaban
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