Gold prices fell during today's trading on Thursday, with the decline in market expectations of cutting interest rates in March, which now reach levels below 10%, especially after the statements of members of the Federal Reserve this week, which negated the attractiveness of the metal as a safe haven, but there are still geopolitical concerns to keep buying gold as a safe haven as long as this conflict continues in the Red Sea and the Middle East as a whole, which makes gold somewhat cohesive in light of its current decline expectations, due to the lack of clarity of vision by the Federal Reserve on possible dates to start cutting interest.
Collins, a member of the board of governors of the US Federal Reserve, said that it may be appropriate to cut interest rates if inflation and labor markets continue to slow down, but if progress in the fight against inflation stops, we may need to stabilize the policy at the current range for a longer period.
Since we need to see more data before making a decision to cut the interest rate, after the release of strong jobs data for January, it is possible that the US Federal Reserve will be cautious about its monetary policy in the coming months.
Fed member Tom Parkin also said that in light of the growing uncertainty, it makes sense to be patient about interest rate cuts, noting that the forecasts he had eight weeks ago were confused by some data, and today we are also waiting for a speech by Parkin at 7:05 pm Egypt time.
Fed officials want to postpone cutting interest rates until they have more confidence that inflation is heading down to 2%.
On the other hand, the rise in US Treasury bond yields strengthened gold's declines during today's trading.
