The «bullish» rally in gold goes on

The price of gold continues to rise, without stopping at the historical highs set yesterday. On Thursday, the quotes rose by 0.5% and reached $2,168 per ounce, exceeding the previous record level of $2,158.2.

The growth of the precious metal is supported by the weakening of the US dollar and a decrease in government bond yields, which is caused by hopes for an early reduction in interest rates by the Federal Reserve System due to the deteriorating economic situation in the country. 

Yesterday, the head of the Federal Reserve, Jerome Powell, said that it might be advisable to ease monetary policy «at some point this year.» At the moment, traders estimate the probability of a rate cut by the Federal Reserve in June at 70%.

Analysts note that gold is likely to continue to rise as bullish sentiment remains dominant in the gold market. However, the market may need some time to digest Powell's comments and evaluate Friday's employment report.

Experts predict that the number of jobs in the US economy increased by 200 thousand people in February (after an increase of 353 thousand in the previous month), and unemployment remained at 3.7%.