Gold breaks the $2,000 barrier. The weak US economic data has helped the price of gold.
On Wednesday, gold prices rose above $2,000 per ounce and hit their highest level since March 2022. This was because people were looking for safe havens, and US economic data wasn’t as good as expected.
At 12:40 GMT, spot gold was up 0.1% to $2,030 per ounce, but US gold futures stayed the same at $2,038.10. Analysts say that the precious metal will keep going up above $2,000 because the US economy is getting worse.
“Gold has been above $2,000 in August 2020 and March 2022, so the third time is the charm.” “This time, it seems like it will be able to keep going, even though the economy is getting worse,” said independent analyst Ross Norman to Reuters.
He says that weaker economic data has changed the focus from fighting inflation to saving the economy as a whole.
The US payroll processing company ADP said on Wednesday that hiring in the private sector slowed down in March. This is a sign that the US economy is headed for a sharp slowdown or recession. ADP said that 145,000 jobs were added last month, which is fewer than what Dow Jones thought would happen (210,000).
Investors have been buying more gold lately to protect themselves from the spreading problems in the US banking sector. When the market is uncertain, they usually buy gold to protect themselves.