New York April 5 2023: Gold prices rose on Wednesday to their highest level since March 2022 after weak U.S. economic data spurred safe-haven demand and expectations that the Federal Reserve might loosen its stance on monetary policy tightening.
Spot gold was up 0.3% at $2,025.49 per ounce, as of 0716 GMT, in thin trade as China and Hong Kong markets were closed for a holiday. U.S. gold futures firmed 0.2% to $2,042.10.
The dollar index hovered near two-month lows, making bullion cheaper for buyers holding other currencies.
“Gold could continue to tear to the upside,” given a slowing global economy with high inflation, said Clifford Bennett, chief economist at ACY Securities, adding that the dollar’s weakness was allowing gold to leap higher.
Gold prices rallied 2% to cross $2,000 per ounce on Tuesday after another batch of weaker U.S. economic data pointed to a slowing economy.
Local gold prices in Pakistan hit a record high of 2,18,300 rupees per tola on Wednesday amid rupee depreciation on political turmoil and lower reserves.
