Gold prices rose significantly today, fixing the maximum increase for the week and peaking 31 March. Support for precious metals has increased demand for safe-haven assets due to the fall in world stock markets.
"If I look at the markets, I would say that there is some demand for safe-haven assets, - said an analyst at ABN Amro Georgette Boele -. Gold is now no reason to fall in price, people are looking for reasons for buying it, and now it is becoming cheaper stock" .
Since the beginning of the year gold has risen in price by almost 16 percent against the backdrop of the Fed's commitment to a gradual increase in the cost of borrowing. Fed Chairman Yellen said last week that caution is justified in terms of tightening policy. Recall, tomorrow the Fed will publish the minutes of its last meeting, which took place on 15-16 March. Analysts say that the protocol may provide a more complete picture of how the Fed plans to the next rate hike. The chances of a rate hike by December fell to 58 percent from 68 percent a month ago. However, yesterday the head of the Federal Reserve Bank of Boston Eric Rosengren said that the Fed's rate futures are not significantly reflect the pace of rate hikes in the short term. Rosengren sees fit gradual increase in rates, but, in his opinion, it will not be so gradual, according to market participants. "While the recent turmoil in financial markets are constraining factor for the Fed at higher rates, strong labor market and rising core inflation is likely to force the Fed to increase the rate at 0.25% until the end of the year", - stated in the Societe Generale.
The rise in gold prices also contributed to the statement of the head of the IMF Lagarde. She noted that skeptical about the pace of global economic growth, and considers necessary a more decisive action to implement structural reforms. "Recovery is too slow, remains too fragile, and the risks are growing", - explained Lagarde. According to her, over the past 6 months, the prospects for global growth have deteriorated, which was caused, including the weakening of the growth of China's economy and the fall in commodity prices.
Little influenced by the US statistics. The Markit noted that suppliers of services in the US signaled a moderate recovery in business activity growth and sustainable employment growth in March. The seasonally adjusted final index of business activity in the US services sector rose from to 51.3 in March, up from 49.7 in February and returned back above the 50.0 threshold. However, the final reading was the second lowest level since October 2013 and indicated only a small rise in output. Meanwhile, another report showed that the index of business activity in the US service sector, which is calculated by the Institute for Supply Management rose to 54.5 in March from 53.4 in the previous month. According to the forecast, the rate had to increase to 54.
April futures price of gold on COMEX today rose to $ 1228.1 per ounce.