Gold prices are trading steadily above the $2,000 mark

Gold prices are trading steadily above the $2,000 mark, which is becoming a significant support level. The bullion price is benefiting from growing expectations that the Federal Reserve will soon pivot and start cutting rates. A significant number of observers believe that the first cut may come as early as March 2024, but this is not a majority view yet. The consensus amongst investors is that the Fed will act according to the data; however, with inflation decreasing faster than predicted and the economy cooling down, the planets are aligning for a rate cut within the first half of 2024. Against this background, the softening of the dollar and treasury yields is likely to continue, in a dynamic that may create scope for further gains for the precious metal.

Ricardo Evangelista – Senior Analyst, ActivTrades