Gold steady after inflation data hits 8-month high

in front of US inflation data released on Thursdaywho can drive of the Federal Reserve Ahead of the policy decision, gold prices were steady after hitting an eight-month high on Wednesday.

Spot gold was steady at $1,883.95 an ounce at the time of writing. SPDR Gold Minishare Trust gldm has increased by 8.72% in the last six months while iShares Gold Trust IAU increased by 8.67%.

Traders expect a 77% chance the central bank will raise the benchmark rate by 25 bps to 4.50%-4.75% in February and keep rates up to 4.92% by June, according to Reuters.

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Take the Expert: Jim Wyckoffsenior analyst Kitco Metals According to a Reuters report, prices were trading lower as “short-term futures traders took profits” ahead of the CPI report yesterday. He added that the market may continue to trade sideways ahead of the data.

Craig Erlam, a senior market analyst at Oanda The report said it could be a big one “if we get another good reading that shows inflation is falling faster than expected.”

While concerns remain over the scale and impact of the COVID-19 outbreak in top gold consumer China, “over the long term, China is expected to rebound strongly, which could stimulate additional demand,” Erlam said.

Fed Comments: growing number of federal Reserve officials seem less aggressive next FOMC meeting to be held in February

Read next: Boston Fed’s Susan Collins leaning toward 25 bps rate hike at next policy meeting: NYT

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