Advertisements
Home Gold News Gold Prices Surge Above $2,220 Amidst Anticipation of US Inflation Data

Gold Prices Surge Above $2,220 Amidst Anticipation of US Inflation Data

by anna

In Thursday’s early American session, the price of gold (XAU/USD) rallied above $2,220, showcasing strong momentum ahead of the release of the United States core Personal Consumption Expenditure (PCE) Price Index data for February, scheduled for publication on Friday.

Market analysts suggest that the Federal Reserve (Fed) may reassess rate cut expectations based on the underlying inflation data. A reading indicating persistent price pressures could prompt the Fed to scale back expectations for rate cuts. This scenario could lead to an increase in yields on interest-bearing assets, such as Treasury bonds, which tend to gain appeal in a high-inflation environment. Conversely, softer-than-expected inflation figures could bolster expectations for a Fed rate cut during the June meeting, supporting the broader narrative of three rate cuts for the entirety of 2024.

Advertisements

The Fed is anticipated to maintain a cautious approach to rate cuts, as implementing them prematurely or excessively could potentially reinforce price pressures. Moreover, a delay in implementing rate cuts could exert unnecessary pressure on both the labor market and the overall economy.

Advertisements

Meanwhile, the US Dollar Index (DXY), which measures the value of the US Dollar against a basket of six major currencies, experienced a retreat after hitting a six-week high at 104.72. Despite the final estimate from the US Bureau of Economic Analysis (BEA) indicating that the economy grew by 3.4% in the final quart

Advertisements
Advertisements

You may also like

Lriko logo

Lriko is a gold portal website, the main columns include gold pricespot goldsilver pricespot silvergold futures, nonfarm payroll, gold basics, gold industry news, etc.

© 2023 Copyright  lriko.com