Gold prices stabilized near the lowest level in two months during these moments of trading, today, Wednesday, as they are trading below the key level of $2,000 per ounce, as the stronger-than-expected US inflation report prompted traders to reduce bets on imminent interest rate cuts by the Federal Reserve. .
Gold came under severe pressure after the US inflation report showed consumer prices rose more than expected in January, delaying the expected timing of the first Fed rate cut, as well as the amount of the cuts, said Kelvin Wong, a senior market analyst for the Asia-Pacific region at Awand. Which is expected to be seen by the end of the year.
Excluding volatile food and energy prices, the so-called core CPI in the United States accelerated 0.4% in January and rose 3.9% from a year ago, and expectations were 0.3% and 3.7%, respectively.
Wong added that the next major support level for spot gold is $1,975 per ounce, as this coincides with what the Federal Open Market Committee meeting revealed in December when they announced interest rate cuts of three-quarters of a point in 2024, sending gold higher.
Traders have reduced their bets from four quarter-percentage-point rate cuts for 2024, in line with a “point chart” released by the Fed in December, and the Fed may wait until June before cutting interest rates.
The US dollar index hovered near the highest level in three months, while 10-year Treasury bond yields approached the highest level in two and a half months.
Investors will now focus on US retail sales data scheduled for Thursday and Producer Price Index numbers scheduled for Friday. At least 5 Fed officials are scheduled to speak this week.
Gold at settlement yesterday
Gold futures prices fell at the settlement of trading yesterday, Tuesday, with bond yields and the dollar index rising, in light of renewed fears of monetary tightening following US inflation data.
Upon settlement, gold futures prices for April delivery fell by 1.25%, or $25.8, at $2,007.2 per ounce, the lowest level at the end of the session since January 17 ($2006.50), after touching $2,047.3.
Gold and dollar now
Gold futures fell 0.1% to $2,005 an ounce.
While spot gold contracts fell by about 0.03% to $1,992 per ounce. After recording its lowest levels since December 13 on Tuesday. The metal fell about 1.4 percent on Tuesday, the largest daily decline since December 4.
On the other hand, the dollar index fell by 0.1% to 104.750 points.
other metals
Spot platinum settled at $871.90 per ounce, palladium fell 0.2% to $862.14, and silver fell 0.2% to $22.04.
