Gold prices garnered huge profits this year, reaching successive record highs past $2100 and opening the door for even more gains.

Now JPMorgan’s analysts expect gold prices to scale $2500 an ounce this year. 

JPMorgan commodity research analysts Natasha Kaniva said to Bloomberg that reaching $2500 is possible after scaling a record high of $2195 on Friday. 

However, she added that $2500 gold prices require US labor and inflation data to be moderate in upcoming months, which would accelerate US interest rate cuts. 

The Federal Reserve is widely expected to commence policy easing this year, and boost the appeal of gold futures. 

 However, the Fed asserted that its policy decisions will depend on the progress of inflation data and the labor market in upcoming months. 

The Fed is convening next week to discuss US monetary policies, expected to maintain interest rates unchanged for the fifth straight meeting. 

Euro fell in European trade on Thursday against a basket of major rivals, moving in a negative zone against the dollar ahead of important remarks by European Central Bank officials.

The dollar gained ground alongside US 10-year treasury yields, and before important US retail sales and producer prices data.

EUR/USD

EUR/USD fell 0.15% to 1.0932, with a session-high at 1.0955, after closing up 0.2% on Wednesday, the second profit in a row on higher risk appetite. 

ECB Officials 

Throughout the day, European Central Bank policymakers will discuss economic developments in the eurozone and especially inflation and interest rates, which could provide fresh clues on the likely data of policy easing.

European Rates 

The ECB is discussing the appropriate time to end the policy tightening cycle and officially commence interest rate cuts.

As inflation in the eurozone approaches the 2% target, ECB policymakers remain wary of a premature move to easy policies. 

Thus, markets are now betting on June as the likely date for the first ECB interest rate cut. 

The Dollar 

The dollar index rose 0.1% on Thursday against a basket of major rivals as US treasury yields gain ground. 

US 10-year treasury yields surged to a two-week high at 4.202% ahead of important US data on retail sales and producer prices, which will provide fresh pricing for US interest rates this year. 

The Energy Information Administration reported a drop of 1.5 million barrels in US crude stocks last week to 447 million barrels, while analysts expected no change.

US gasoline stocks fell 5.7 million barrels to 234.1 million barrels, while distillate stocks rose 0.9 million barrels to 117.9 million barrels. 

Dow Jones gained ground on Wednesday as the NASDAQ and S&P 500 both lost ground, with investors assessing latest US inflation data. 

Earlier US data showed consumer prices rose 3.2% y/y in February, up from 3.1% in January, while analysts expected no change.

On a monthly basis, US consumer prices rose 0.4% last month, accelerating from 0.3% in January. 

Core prices, excluding food and energy, rose 3.8% y/y in February, slowing down from 3.9%. 

Now investors await US producer prices data tomorrow, expected to show a monthly increase of 0.3% in February. 

On trading, Dow Jones rose 0.4%, or 155 points as of 16:37 GMT to 39,160, while S&P 500 fell 0.1%, or 6 points to 5169, as NASDAQ shed 0.5%, or 90 points to 16,176.