Last week was a volatile one for gold prices.

With fluctuations mainly within the range of the previous two weeks. On Monday, XAU/USD opened with some momentum, peaking at $1,858, the highest level in almost three weeks, but ended the day below $1,850. However, on Tuesday, the Fed Chairman’s comments triggered a rally in the US Dollar, causing gold to fall by over $30.

Despite positive employment numbers, gold prices remained under pressure due to hawkish comments from the Fed Chairman. However, on Thursday, a surge in initial jobless claims eased expectations of a more hawkish FOMC, leading to a boost in gold prices. The upward momentum continued on Friday, with gold prices erasing weekly losses and rising above $1,850. Looking ahead, the US Consumer Price Index on Tuesday will be closely watched ahead of the FOMC March meeting.

Gold prices surged by almost 2% on Friday.

As concerns over the banking sector outweighed a strong US jobs report. The slide in US Treasury yields and broader financial markets also contributed to the rise in gold prices, as investors sought safe-haven assets. The troubles faced by US tech lender SVB had a ripple effect on global markets, leading to increased interest in gold as a store of value during uncertain times. The rise in gold prices was also attributed to the drop in yields.

By Alexandre Laurent

Alexandre Laurentl is working in the jewelry and investment gold since 2002. Alexandre graduated from The Normandy School of Business and from the University of Perpignan a Bachelor of economics in 1995.

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