The first three most actively traded gold options suggest a further rise in prices. Their volumes and costs have almost doubled. Yesterday futures showed the fastest growth in 8 months.
In anticipation of a more rapid increase in Fed rates, gold has stopped its growth in March. However, on Wednesday Janet Yellen weakened these fears, assuring investors that the monetary policy of the central bank will remain accommodative for some time. Forecasts for two more rate hikes this year were maintained unchanged.
“Gold prices have already taken into account 3 rate hikes, so it’s silly to keep short positions”, said Naeem Aslam, chief analyst at Think Markets.
Futures of the April delivery added 2.2% to $ 1 227.10 per ounce at the commodity exchange Comex. Metal took the course for the first weekly gain from February 24th.
Silver showed the fastest growth in 2 months, while platinum and palladium also grew.
The index of 15 leading gold producers from Bloomberg Intelligence grew by 2.1%.
The US dollar continues to show weakness
In the FOREX currency market, the US dollar is trading in a narrow range, continuing to show weakness after the press conference of the Fed Chairman Yellen. The central bank did not signal an increase in the rate of monetary policy tightening, which disappointed traders.
Yesterday, the dollar index, tracking the value of the US currency against the basket of six currencies, retreated by 0.1% to 100.26.
The index of business activity in the manufacturing sector PMI in New Zealand in February amounted to 55.2, against 51.6 in December.
Markets expected a more “aggressive” tone from the Fed, but received a signal about the gradual normalization of monetary policy, with only two subsequent increases in rates this year, notes ANB AMRO Research.
ABN AMRO forecasts a weakening of USD.
“It seems that the growth of the dollar has come to an end, and in the short term the downward pressure will increase”, experts note.
In addition, the decline in gold prices stopped and the metal will soon return to its mark at around 1.250.
The dollar index is trading at around 100.41, and gold – at 1229.59.