Gold Holds Strong above $2050 Amid Fed Signals and Safe Haven Demand

Published on Dec 05, 2023 12:37

Gold maintained its position above $2050 per ounce during the mid-Asia session, stabilizing after a recent surge to record highs earlier in the week. Investors are now eyeing the upcoming US monthly jobs report on Friday for insights into potential shifts in interest rates. The precious metal experienced an unusual spike, surpassing $2152.30 an ounce on Monday before a sharp decline. Factors contributing to the surge included less hawkish signals from the Federal Reserve, heightening expectations of early interest rate cuts, and increased safe haven demand fueled by concerns over a Red Sea attack on U.S. vessels. Meanwhile, MCX February bullion futures in India reached an all-time high above Rs 64000 before settling at Rs 62566.