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.