Gold opens higher and marks another rise to historic highs.

The strength of gold lies in the accumulation of gold by states. In that sense, global central banks purchased 1,037 tons during 2023.

Ignacio Teson•Monday, March 11, 2024•1 min read

So far this year, gold has accumulated an appreciation of nearly 5.5%.

The troy ounce of gold, a quintessential safe-haven asset, has pierced its historic highs for the fifth consecutive day, registering a 0.2% increase and reaching $2,181.5 after the release of the U.S. employment report for February last Friday. During this period, job creation improved, but the unemployment rate rose by two tenths to 3.9%.

Given that investors desire lower interest rates and crave certainty, increased confidence about when the Federal Reserve (Fed) will lower rates could be considered another positive factor for bullish investors.

XAU/USD

The strength of gold lies in the accumulation of gold by states. In that sense, global central banks purchased 1,037 tons during 2023, the second-highest annual total ever recorded.

Gold has experienced a record-breaking week buoyed by central bankers’ statements: ECB President Christine Lagarde indicated Thursday in the post-monetary policy meeting press conference – where rates were kept at 4.5% – that June will be the key meeting to lower interest rates.

On his part, the President of the United States Federal Reserve (Fed), Jerome Powell, indicated on Wednesday before the US Congress that he sees it likely that the organization will begin to lower interest rates this year if the US economy “evolves as expected”.

Furthermore, he reiterated that message Thursday before the Senate, indicating that he sees interest rate cuts this year as “likely”, with the usual caveat that this decision is contingent upon inflation “sustainably” approaching the 2% target.

In this manner, gold reached historic highs on Tuesday at $2,140; on Wednesday, it surpassed this milestone by reaching $2,150, and on Thursday, it once again broke its ceiling – breached again on Friday – reaching $2,160.

Prior to this streak, one would have to go back to December 4th, when it reached $2,135, to find the highs of the gold ounce.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.