Gold prices surged to an unprecedented height of $2,082 per ounce by the conclusion of last week’s trading, buoyed by a decrease in US bond yields and the weakening exchange rate of the US dollar against other major currencies.
According to a specialized report released today by the Kuwaiti firm “Dar Al-Sabaek,” ongoing American economic indicators pointed towards a downturn in the manufacturing sector throughout February, reports Al-Jarida daily.
Additionally, the report highlighted a 2.7 percent dip in the “consumer confidence” index, which fell to 76.9 points from January’s 79 points, fostering a climate of investor pessimism. Consequently, investors turned towards gold as a safer haven amidst the perceived risks within the American market.
Further insights from the report indicated a decline in the inflation rate, reaching its lowest level in nearly three years, with the US Federal Reserve signaling intentions to cut interest rates later in the year.
Futures contracts for gold (April delivery) recorded a consecutive 2 percent increase, surging to $2,095 per ounce, setting a new milestone unprecedented in the precious metals market.
The report emphasized the significance of upcoming economic data releases, notably the semi-annual monetary policy reports from the US Central Bank and pivotal decisions on interest rates within the European Union, expected to impact gold prices in the current week.
