Gold Jumps $10; Awaits US Jobs & NFP

Published on Jan 02, 2024 13:44

Gold surged to $2,080 per ounce on the first day of the new year, rebounding from a two-day decline, driven by strong expectations of the US Federal Reserve initiating interest rate cuts in 2024. Markets are currently pricing in a nearly 90% chance of rate cuts starting in March. Investors are now looking forwards to key US data releases due this week, including job openings and nonfarm payrolls, as well as minutes from the Fed�s December meeting. The dichotomy between the US Fed`s shift to a more dovish stance, signaling three rate cuts in 2024, and the ECB and BoE`s sustained hawkishness is rooted in disparate risk assessments. Rising geopolitical tensions, trade fragmentation, energy price increases, and extreme weather conditions are major concerns for the ECB and BoE, contrasting with the US Fed`s adjusted outlook based on different risk evaluations. Whereas, Bank of Japan faces pressure to reconsider its negative rate policy, while the People�s Bank of China is anticipated to implement further policy easing for economic support. MCX February delivery gold futures were jumped to as high as Rs 63588 per 10 grams, earlier in the session and where recently seen trading up Rs 215.