Gold prices continued to soar on Wednesday, driven by a weaker dollar and heightened safe-haven demand due to escalating tensions in the Middle East. Additionally, investors were eagerly awaiting more U.S. economic data for insights into future policies.
FUNDAMENTALS
* Spot gold GOLD climbed 0.2% to $2,283.47 per ounce, after reaching a record high of $2,288.09 earlier in the day.
* U.S. gold futures 
GOLD increased by 1% to $2,303.80 per ounce.
* The U.S. dollar slightly weakened by 0.1% following its five-month high in the previous session, making gold more affordable for holders of other currencies.
* Recent data showed a slight uptick in U.S. job openings in February, indicating a gradual easing of labor market conditions, which could potentially lead to interest rate cuts by the Federal Reserve as early as June.
* Two Federal Reserve policymakers suggested the possibility of cutting U.S. interest rates three times this year, despite doubts arising from stronger recent economic data.
* Israeli Prime Minister Benjamin Netanyahu admitted to mistakenly killing seven people in a Gaza airstrike, drawing concern and condemnation from the U.S. and other allies.
* Gold Fields 
GFI projected a 20% decline in the group’s first-quarter output due to operational difficulties in South Africa, as well as unfavorable weather conditions in Australia and Peru.
* Despite gold’s impressive rally, analysts noted a lack of enthusiasm for platinum jewelry in Asia.
* Traders are currently estimating a 64% likelihood that the Federal Reserve will initiate rate cuts in June, as per the CME Group’s FedWatch Tool. Lower interest rates diminish the opportunity cost of holding gold.
* In the same vein, spot silver 
XAGUSD1! rose by 0.3% to $26.19 per ounce, platinum 
PL1! inched up by 0.3% to $921.39, and palladium 
XPDUSD1! remained steady at $1,003.60.
DATA/EVENTS (GMT)
0145 China Caixin Services PMI March
0600 Russia S&P Global Services PMI March
0900 Euro Zone HICP Flash YY March
0900 Euro Zone HICP-X F, E,A&T Flash YY, MM March
0900 Euro Zone Unemployment Rate Feb
1200 Brazil Industrial Output MM, YY Feb
1300 Brazil S&P Global Services PMI, Comp PMI March
1345 US S&P Global Services PMI, Comp PMI March
1400 US ISM Non-manufacturing PMI March
1600 Russia Unemployment Rate Feb
1610 US Fed Chair Jerome Powell speaks on the
economic outlook before the Stanford
Business, Government and Society Forum
Additional Insight:
The demand for gold as a safe haven asset during times of geopolitical uncertainty, such as the situation in the Middle East, has historically driven up its prices. Additionally, the inverse relationship between the U.S. dollar and gold prices plays a significant role in determining the precious metal’s value on global markets. The combination of these factors, along with expectations of potential interest rate cuts by the Federal Reserve, has contributed to the ongoing rally in gold prices, impacting other precious metals as well.
