Gold prices took a breather above $2,040 on Thursday, halting a four-day decline as investors digested mixed signals about the Federal Reserve’s future moves.
The recent dip was fueled by a stronger dollar and rising Treasury yields, reflecting doubts about the pace and extent of potential interest rate cuts by the Fed this year.
Meeting minutes released recently hinted at lower rates in 2024, but officials acknowledged significant uncertainty in the policy path. Markets, however, remain divided, with the current probability of a first rate cut in March down to 70% from 90% just a week ago.
Meanwhile, both the European Central Bank and the Bank of England reiterated their stance on keeping rates high for the foreseeable future.