Gold Prices Rise On Weaker US Dollar, Awaiting Crucial CPI Data
Date
5/15/2024 3:28:37 PM
(MENAFN- Investor Ideas) Gold prices were higher today, building on yesterday's positive performance as the asset benefited from a weaker US dollar and subdued Treasury yields. The market shrugged off PPI inflation data on Tuesday as attention remained on US CPI data. Fed Chair Jerome Powell mentioned on Tuesday that he expects US inflation to continue declining through 2024 and noted that it was unlikely that the central bank will need to raise interest rates again, which also positively influenced market sentiment. Additionally, April's Retail Sales data will be published, providing insights into consumer spending trends. Weaker-than-forecast CPI figures could rekindle hopes of disinflation and could support gold prices. Conversely, hotter-than-anticipated inflation numbers could push expectations around a longer hold in interest rates, boosting the U.S. dollar and weighing on precious metals. At the same time, demand from the Chinese market and central banks could continue to support gold prices.
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