Gold prices experienced a dip amid rising concerns over sustained high U.S. interest rates, with traders eagerly anticipating crucial economic data releases. Despite the relatively subdued movement resulting from hints by Federal Reserve officials about maintaining current rate levels, gold’s safe-haven allure played a role in moderating losses. Recession fears in Japan and the UK, coupled with tensions in the Middle East, contributed to gold’s resilience.
The spotlight is now on the upcoming U.S. Personal Consumption Expenditures (PCE) price index, a significant inflation indicator, where expectations align with the anticipation of the Federal Reserve maintaining its current rate stance. This policy typically exerts pressure on gold prices by increasing the cost of holding non-yielding assets.
Silver and platinum also witnessed declines, while copper prices experienced a slight drop as they await signals of Chinese economic recovery. The upcoming Purchasing Managers’ Index (PMI) data and Chinese President Xi Jinping’s emphasis on logistics and industrial activity renewal are seen as potential indicators of shifts in demand.
