Gold Price Surges Past $2,020 Amid Middle East Tensions
Solid ECN - Gold's value climbed to over $2,020 per ounce on Monday, recovering some of its recent losses, driven by increased demand for this secure asset amidst escalating tensions in the Middle East. This surge was primarily attributed to the missile strike by Houthi rebels on a Transfigura-managed oil tanker near Yemen's coast and a drone assault on American troops in northeastern Jordan, resulting in the death of three US soldiers.
The investment community is cautiously awaiting the US Federal Reserve's upcoming monetary policy decision. It's primarily anticipated that the interest rates will remain unchanged. Still, keen attention is on Federal Reserve Chairman Jerome Powell's commentary post-meeting for hints about initiating a potential easing phase. Additionally, the impact of unexpectedly robust US economic figures and the Fed officials' firm stance has lessened the likelihood of a rate reduction in March. Market predictions now suggest a 48% probability of a rate cut in March, a notable drop from the 86% likelihood recorded at December's end, per the FedWatch Tool by CME.