Gold continues upward trend, surpasses $2,030 mark

Yellow metal set to record highest annual gains in three years
Gold continues upward trend, surpasses $2,030 mark
Price of gold has risen for the second consecutive week

Experts anticipate that gold prices will experience an upswing as indicators point towards a decline in U.S. inflation. These signs also suggest that the Federal Reserve (Fed)’s tightening of monetary policy, which began in March 2022 and raised interest rates within a range of 0.25 percent to 5.5 percent, is coming to an end.

Continuing its upward trajectory, the price of gold has risen for the second consecutive week. On Thursday, the price per ounce surpassed the $2,030 mark.

Spot gold showed a modest gain of 0.2 percent, reaching $2,033.98 per ounce. It has maintained a narrow trading range of $9 during the current session. Meanwhile, U.S. gold futures experienced a slight decline of 0.1 percent, settling at $2,045.70.

Gold prices have surged by over 11 percent since the start of the current year, marking their highest annual gains in three years.

Read more: With Fed’s dovish stance, gold prices surge for a second day

Gold’s prospects

According to Ricardo Evangelista, senior analyst at ActivTrades, if the upcoming U.S. data supports the expectation of the Fed initiating interest rate cuts soon, it will likely result in an increase in the value of gold.

However, if the data reveals stronger economic performance, the Fed may opt to maintain higher interest rates for an extended period. Evangelista believes that 2024 will be a favorable year for gold as major central banks unwind their restrictive monetary policies.

Investors are currently focused on forthcoming economic indicators, including the U.S. third-quarter GDP report, weekly jobless claims data (to be released later today), and the core personal consumption expenditure (PCE) report (scheduled for Friday).

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