MUSCAT : Spot gold witnessed a remarkable uptick, surging by 1.4% to reach $2,113.28 per ounce, marking its highest since December 4th. This surge in gold prices was fueled by a combination of factors, including subdued U.S. economic data, anticipation of dovish remarks from Fed Chair Jerome Powell, and geopolitical tensions worldwide. The bullish sentiment surrounding gold was further supported by projections of a rate cut in June, as indicated by the CME Fed Watch Tool.

The surge in gold prices comes amid mounting expectations of a dovish stance from the Federal Reserve. Phillip Streible, chief market strategist at Blue Line Futures in Chicago, remarked that Fed Chair Jerome Powell’s upcoming speeches and the possibility of disappointing U.S. jobs data could bolster gold’s upward trajectory. Streible emphasized the likelihood of gold surpassing its record highs in light of these developments.

Jim Wyckoff, senior analyst at Kitco Metals, echoed similar sentiments, highlighting the impact of subdued inflation on gold’s bullish momentum. Wyckoff emphasized that as long as inflation remains subdued, gold is poised to continue its upward trend.

Geopolitical tensions across the globe have also played a significant role in bolstering gold prices, reducing short-selling appetite and strengthening gold’s appeal as a safe-haven asset. Ole Hansen, Saxo Bank’s head of commodity strategy, noted that heightened geopolitical tensions have contributed to the current bullish sentiment surrounding gold, enhancing its credentials as a favourable investment option.

London’s gold price benchmark reached an all-time high during Monday’s afternoon auction, surpassing the previous record set in December.

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