Gold futures rose more than $20, near $1,920 today. While investors are buying gold as a safe haven asset. Amid concerns regarding the US economy
At 7:15 p.m. Thai time, the COMEX (Commodity Exchange) gold contract will be delivered in June. It rebounded $26.40, or 1.39%, to $1,917.70 an ounce.
The U.S. Commerce Department released its first estimate for 1Q12 gross domestic product (GDP) showing that the U.S. economy contracted 1.4%, the first contraction since a recession hit by the fallout from the global recession. The spread of COVID-19 in early 2020
Analysts had previously forecast the economy expanding 1.1% in the 1Q12.
However, gold prices are likely to decline in April. by being affected by the dollar’s appreciation and the rebound in US government bond yields
A stronger dollar will reduce the attractiveness of gold. by making gold contracts more expensive for holders of other currencies As the rebound in US Treasury yields increases the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.
Investors were also worried regarding the Federal Reserve’s accelerating interest rate hikes following Fed Chairman Jerome Powell said he encouraged the Fed to move faster to combat inflation. and indicated there was a chance the Fed would raise interest rates by 0.50% at its May meeting. This will be the first time the Fed has raised interest rates by 0.50% since 2000.
At the same time, markets are still worried that the Fed will raise interest rates more strongly following May. might be raised by 0.75% to curb inflation
