International gold prices remained stable, hovering above $2,000 per ounce, as they did not experience an increase. This stability is attributed to the impact of a report revealing that the number of US workers applying for unemployment benefits last week was lower than anticipated.
This development serves as evidence that the US economy is in a recovery phase, with inflation being effectively managed. Consequently, the US Federal Reserve (Fed) has opted to postpone any interest rate cuts. This decision has caused gold to lose its competitive edge when compared to alternative investment avenues.
According to the CME Fedwatch tool, the likelihood of a 25 percentage point rate cut in March decreased from 69.6% to 63.6%. Gold expert Jim Wyckoff from Kitco commented that gold is unlikely to experience an uptick by the week's end, given the ongoing recovery of the US dollar and the increase in US Government bond yields observed in the previous week.
Tim Waterer, a market analyst at KCM Trade, pointed out that the stability of the US dollar and bond yields is exerting pressure on the gold market.
This development serves as evidence that the US economy is in a recovery phase, with inflation being effectively managed. Consequently, the US Federal Reserve (Fed) has opted to postpone any interest rate cuts. This decision has caused gold to lose its competitive edge when compared to alternative investment avenues.
According to the CME Fedwatch tool, the likelihood of a 25 percentage point rate cut in March decreased from 69.6% to 63.6%. Gold expert Jim Wyckoff from Kitco commented that gold is unlikely to experience an uptick by the week's end, given the ongoing recovery of the US dollar and the increase in US Government bond yields observed in the previous week.
Tim Waterer, a market analyst at KCM Trade, pointed out that the stability of the US dollar and bond yields is exerting pressure on the gold market.
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