Market Anticipation Of US Data Spurs Gold Price Recovery
Date
7/23/2024 2:54:02 PM
(MENAFN- Investor Ideas) Gold prices inched up today after declining during the last few days, impacted by a strengthening dollar. The market is also bracing for further volatility in anticipation of key US economic data that could provide more insights into inflation trends in the US. The precious metal has faced uncertainty due to the speculation that Donald trump might win the upcoming US presidential election, which has heightened consumer inflation expectations and could give a boost to the greenback. gold prices could also be impacted in the near term by the recent unexpected interest rate cuts by the Chinese Central Bank. These cuts have contributed to positive market sentiment in the world's second-largest economy, which could limit upside potential for gold.
The market will closely watch key US economic indicators this week, including the advance estimate for Q2 GDP growth, personal spending and income data, and the June PCE price index, which is the Federal Reserve's preferred measure of inflation. These indicators are crucial for assessing if inflation is moving towards the Federal Reserve's 2% target. The market expects interest rate cuts to start in September. Slowing inflation and cooling economic growth, could provide further momentum to gold's rebound.
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