Spot gold prices jumped in trading today, Wednesday, to $ 2032 an ounce, approaching the historical price peak achieved in 2020.

The rally comes amid increased demand for the yellow metal by investors who have reassessed the risks associated with the banking crisis and high inflation rates.

On Tuesday, US data showed that the US labor market is experiencing a significant slowdown, which portends the possibility of a mild recession and the suspension of interest rate increases.

In the middle of Wednesday's session, the price of spot gold contracts rose by 0.50%, or $ 20, to $ 2027 an ounce.

The highest historical price of gold was recorded during 2020 when the price of an ounce reached $ 2073, according to historical data for the yellow metal.

Gold is currently trading at $2031,3.0 an ounce, up more than 5.<>%.

Analysts said that gold is in a position to continue gains and stay above the level of two thousand dollars, as expectations of lower interest rates reduce the opportunity cost of holding gold that does not generate return, and the precious metal is a hedge against inflation and economic uncertainty.

Gold prices jumped 2% on Tuesday after data showed the number of job vacancies in the United States fell in February to the lowest level in nearly two years.


Dollar near two-month low

The dollar hovered near two-month lows on Wednesday after weak data supported expectations that the Federal Reserve would not need further rate hikes, while the New Zealand dollar reached a two-month high after raising interest rates at a larger-than-expected rate.

The dollar index, which measures the performance of the US currency against a basket of 6 rival currencies, reached a two-month low of 101.43 points, before rising in the latest trade 0.1% to 101.59 points after falling 0.5% the previous day.

Markets expect the Fed to keep interest rates unchanged at its next monetary policy meeting in May, up from 59% a day earlier.

And in the details:

  • The New Zealand dollar rose 1.1% to a two-month high of $0.6383 after the decision, but then retreated and rose 0.1% to 0.6361.
  • The euro settled at $1.0948, slightly below a two-month high hit on Tuesday.
  • Sterling was down 0.2% at $1.2479 after hitting a 10-month high a day earlier.
  • The dollar is heading for a third straight day loss against the Japanese yen, falling 0.3% to 131.20.
  • The Australian dollar fell 0.8% to $0.67 a day after the central bank kept interest rates unchanged at 3.6% after 10 consecutive hikes, saying it needed more time to assess the impact of previous rate hikes.