Markets had a day full of surprises – first the unexpected OPEC+ daily oil production cut; Then came in weaker than expected US manufacturing data, and gold returned faster than expected to $2,000 an ounce.
The price of gold futures contracts on the Comex Stock Exchange in New York settled on the first trading day of April at $2000.40 an ounce, up $14.20, or 0.8%, after a session high of $2,008.
It was an exhilarating moment for believers in the yellow metal after two straight quarters of 9% gains as the US banking crisis in March pushed more investors towards safe havens.
While many are betting that gold will rise above $2,100 at some point in the near future to hit all-time highs, Monday’s return to $2,000 was faster than thought.
“Gold is rising after OPEC+ provided another shock to the global financial outlook,” said Ed Moya, an analyst at online trading platform Onda.
Moya indicated that for the third week in a row, gold began the trading week with a significant development, as the past two weeks were dominated by banking failures in Silicon Valley in California and Credit Suisse in Zurich, before this week’s production cuts by OPEC + raised new concerns about inflation.