Gold Price To Be Set In March

Diana Ember
Diana Ember Currency Economy
3 Min Read

Predictions that major central banks will raise interest rates more aggressively are in demand. On the other hand, the price of gold per ounce has declined recently. It has lost all of its gains since the beginning of the year, but continues to rise against expectations.

Recession Fears Make Markets Cautious

Despite the decline in risk appetite in global markets due to rising inflation and recession concerns, gold prices have been supported by economic data from China. Forecasts that economic activity in China will return to pre-pandemic levels increased market expectations. As a result of the inverse relationship, the value of gold rose due to increased risk aversion, while the dollar continued to depreciate.

Reserve Currencies Were Also Affected

The dollar index, which measures the value of the greenback against six currencies, including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, rose above 105 in recent days to reach its highest level in nearly two months before falling to 104.33 today.

Currencies are influenced by interest rate forecasts from major central banks.

While macroeconomic statistics in the U.S. underpin the potential for “persistent inflation,” gold prices have come under pressure amid fears that the Federal Reserve (FED) will beat forecasts and begin cutting interest rates in 2024.

gold price to be set in march

FED Meeting Expected

Money market prices expect the FED to raise interest rates by 25 basis points at its March, May and June meetings.

On the other hand, the European Central Bank (ECB) is expected to raise rates further, raising the key interest rate to 4% for the first time in history. The ECB is expected to continue to raise interest rates until 2024.

Gold Price Forecasts For March

Yesterday, the price of an ounce of gold fell to $1804, reaching its lowest level since 2023. With these recent losses, the price of gold erased all its gains during the year. Today, the price of yellow gold rose to $ 1838; at 1:29 p.m. it is trading at $ 1833, up 0.36 percent. Yesterday, the troy ounce of gold closed at $ 1,826, up 0.51 percent.

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The thesis I wrote in my last year of university was on future currencies, but it was a very new field for me as the blockchain and crypto world were not that mature yet. Today, I find myself writing on these topics in various news channels, and I can say that I have fulfilled my dreams of university.
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