Gold reached a monthly peak amid dollar weakness and expectations of rate cuts

The price of gold reached its highest level in the last month during trading in Asia on Thursday. This was due to the weakening of the dollar and lower yields on Treasury bonds, which resulted from the publication of less alarming data on consumer inflation. Such indicators have strengthened the expectations of market participants regarding a possible reduction in interest rates this year.

February gold futures increased in price by 0.26%, reaching the level of $2,738 per ounce. At the same time, spot gold returned to its previous values after the morning jump and was trading at $2,709 per ounce.

This increase is due to hopes that slowing inflation and easing labor market tensions may provide the Fed with an opportunity to lower rates in the near future.

But despite this optimism, further growth in the value of gold proved to be limited. The reason for this was the weakening demand for safe haven assets caused by the signing of a cease-fire agreement between Israel and Hamas with the support of the United States. 

In addition, investors' attention was focused on the upcoming economic reports from the United States, which restrained the fall of the dollar. Preparations for the inauguration of the new President of the United States, Donald Trump, scheduled for Monday, added to the uncertainty.