403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Gold prices
(MENAFN- MENAFNEditorial) Gold prices remained within a consolidation range on Tuesday, with market participants adopting a cautious stance ahead of this week’s US inflation data. Elevated US Treasury yields continued to limit upside potential for the metal, even as the dollar softened slightly. Expectations of tighter monetary policy across major economies also remain firmly in place.
In the US, markets currently assign around a 60% probability to a Federal Reserve rate increase next week. This week’s inflation data could therefore prove pivotal in shaping expectations. A firmer print could reinforce tightening bets and push yields higher, adding to the headwinds for gold, while softer inflation could provide some relief. Elsewhere, stronger-than-expected Japanese growth figures and rising real wages have strengthened expectations of a further Bank of Japan rate hike, while the European Central Bank is widely expected to raise rates on Thursday.
Persistent tensions in the Middle East have pushed crude oil to multi-month highs, reinforcing inflation concerns and expectations that monetary policy may need to remain restrictive. This could keep bond yields elevated and limit demand for non-yielding assets such as gold. However, downside risks may be partially offset by resilient investment demand, with recent inflows into gold and precious-metals funds providing some underlying support.
In the US, markets currently assign around a 60% probability to a Federal Reserve rate increase next week. This week’s inflation data could therefore prove pivotal in shaping expectations. A firmer print could reinforce tightening bets and push yields higher, adding to the headwinds for gold, while softer inflation could provide some relief. Elsewhere, stronger-than-expected Japanese growth figures and rising real wages have strengthened expectations of a further Bank of Japan rate hike, while the European Central Bank is widely expected to raise rates on Thursday.
Persistent tensions in the Middle East have pushed crude oil to multi-month highs, reinforcing inflation concerns and expectations that monetary policy may need to remain restrictive. This could keep bond yields elevated and limit demand for non-yielding assets such as gold. However, downside risks may be partially offset by resilient investment demand, with recent inflows into gold and precious-metals funds providing some underlying support.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept any
responsibility or liability for the accuracy, content, images, videos,
licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright issues
related to this article, kindly contact the provider above.
Comments
No comment