Gold prices are on the rise in the new day. The expectation that the US Federal Reserve will slow down the rate hike has supported gold prices in the last two months.
The precious metal has risen 15 percent since November 3, reaching the highest level since April 2022. The expectation that inflation peaked in the USA and that the Fed would slow down the rate hikes was influential in the rally. High interest rates reduce the attractiveness of gold.
After hitting a record high in March last year, prices fell sharply as Central Banks began raising interest rates to rein in high inflation.
While the World Bank revised its growth assumptions for 2023 downwards for many countries and regions yesterday, it warned that new counter shocks could drag the global economy into recession. It is stated that this scenario can support gold, which is seen as a safe harbor.
Spot gold, which rose more than 2 percent in the previous 3 sessions, is trading at $1,881.89 an ounce, with an increase of 0.2 percent this morning.