U.S. gold futures rose moderately, and are trading near the record high reached on Tuesday. Gold is supported by increased demand for safe haven assets, as well as the negative dynamics of the US currency.
Experts said that due to geopolitical tensions, central banks in emerging markets are accumulating gold to diversify risks, while some volatility of the Chinese currency and the emergence of inflationary risks also contribute to an increase in prices for precious metals.
Investors are also preparing for the release of data on the US CPI and the minutes of the March Fed meeting, which may affect the prospects for easing the Fed's monetary policy. Consensus estimates suggest that in March, the CPI increased by 0.3% m/m and 3.4% per annum, and the core CPI increased by 0.3% compared to February and by 3.7% per annum. Experts said that a stronger-than-expected increase in inflation could further reduce the likelihood of a Fed rate cut in June. In March, the Fed left interest rates at the same level, but indicated that it still expects to reduce them three times by 0.25% by the end of the year. According to the CME FedWatch Tool, markets see a 6,3% probability of a 25 basis point rate cut at the Fed meeting in May, and a 54.0% probability of a rate cut in June (compared to 62.3% a week earlier).