With the dollar declining and expectations of interest rate hikes lowering, gold rose to highs that would allow it to hit its biggest quarterly gain in almost 30 years. The metal fell 10 percent last year when the first U.S. rate increase occurred in December, nearly a decade since the last. Spot gold was up 0.35 percent and futures up 0.55 percent. With world stocks falling and the dollar declining, the quarter was full of ups and downs before its close on Thursday. The dollar hit a five-month low against the euro, with the yen also strengthening against the dollar.
The metal is now waiting on new data to be released Friday to see how the labor market did this quarter. The health of the economy and possibilities of interest rate hikes are highly influential for gold prices. Reports could show possibilities of rate hikes not being imminent any time soon, despite Fed reports of two hikes possibly occurring this year. Investors are awaiting reports, causing the market to pause until reports are released. Investors are also waiting to push gold prices even higher if they can be given the right information to do so.
Additional reports from the Federal Reserve that the U.S. central bank should approach the stimulus with caution gave gold a boost in the markets. The metal’s recent 16.5 percent climb in the first months of 2016 was its biggest rise in decades. The safe-haven gold was a combination of worries about China and the receding necessities for interest rate hikes from the Fed. These recent events have rallied behind gold and allowed investors to push it up. Most importantly, if interest rates remain low, gold will continue to rise. Spot hold was up at $1,232.90 an ounce and gold futures for June delivery went up to $1,231.30.