Gold prices settle as investors await US inflation data
Date
9/11/2024 6:03:23 AM
(MENAFN) Gold prices remained steady on Wednesday as investors anticipated crucial U.S. inflation data, which could provide insights into the potential size of an interest rate cut by the Federal Reserve next week. As of 0319 GMT, spot gold was priced at USD2,518.22 per ounce, while U.S. gold futures saw a modest increase of 0.2 percent, reaching USD2,547.10. Analysts, including Matt Simpson from City Index, noted that gold is maintaining a stable range due to strong market support as investors await the upcoming U.S. inflation report. Simpson suggested that if the data confirms a decrease in inflation, it could propel gold prices to record highs.
The U.S. Consumer Price Index (CPI) report is scheduled for release at 1230 GMT, with Producer Price Index (PPI) readings and jobless claims data set for Thursday. Expectations are that the CPI report will reveal inflation nearing the Federal Reserve's 2 percent target, which would support Chairman Jerome Powell's stance on managing price growth. This data is anticipated to play a critical role in deciding the magnitude of the interest rate cut at next week's Federal Reserve meeting. According to a poll, most economists predict a 25 basis point rate cut at each of the three remaining policy meetings for 2024.
Peter Fung, head of trading at Wing Fung Precious Metals, highlighted that gold prices have strong support in the USD2,450-USD2,460 range and forecasted that by year-end, gold could trade around USD2,600, driven by a potential easing of U.S. monetary policy and persistent geopolitical tensions. In related precious metals, silver saw a 0.1 percent increase to USD28.40 per ounce, platinum gained 0.6 percent to USD943.10, and palladium rose 0.9 percent to USD973.78. Meanwhile, Israeli Defense Minister Yoav Galant indicated that Israeli forces are nearing the completion of their mission in Gaza and are shifting their focus to the northern border with Lebanon, where they continue to engage with Hezbollah.
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