Gold prices soared to almost a 7-month high

During Wednesday's trading, gold prices rose sharply, reaching the highest level in almost seven months – $2,052.1 per ounce. The current quote of the asset is $2042.

The increase in precious metal prices occurred against the background of an increase in the number of «dovish» signals from officials of the US Federal Reserve System, which suggests that a reversal of the central bank's policy is not excluded in the near future.

Fed officials said the central bank should exercise caution in its policy of keeping interest rates high. Such comments reinforce expectations that the Fed may start cutting rates earlier than expected. Traders estimate the probability of a Fed rate cut in March 2024 at 40%.

In addition, the weakening of the US dollar to lows over the past four months and the decline in the yield of US government bonds also contributed to the growth of interest in gold. In Asian trading, the yield of 10-year bonds fell to a 2-month low.

Prices for industrial metals such as copper remain stable. Copper futures expiring in March remained at $3.8460 per pound. Disruptions in copper supplies in Peru and Panama have eased concerns about a possible drop in demand ahead of the release of economic data from China. It is expected that the business activity index in China will show a decline in production activity.