Gold’s value is anticipated to surge as the Federal Reserve’s strategy suggests maintaining higher interest rates for an extended period. Gold’s appeal also remained strong, bolstered by its status as a safe investment amidst escalating Middle East tensions.
Despite the Fed’s stance, which prompted a sell-off in riskier assets like stocks, gold’s appeal increased due to heightened demand, further supported by the intensifying conflict involving U.S.-led forces and the Houthi Group in Yemen. Spot gold prices saw a slight increase, contrasting with a minor decline in future contracts for March, indicating a stronger demand for physical gold. However, gold’s gains were somewhat limited by a significant rise in the U.S. dollar, reaching near seven-week highs.
Disclaimer: This information is provided for general informational purposes only and is not intended as financial advice. Investment decisions should be based on individual circumstances and appropriate professional advice.