Gold eases as spotlight shifts to US inflation data

Spread the love
A view shows an ingot of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS

          Summary

  • US CPI data due at 1330 GMT
  • Spot gold may fall towards $2,635 – technicals
  • Donald Trump to begin his second term next week
Jan 15 (Reuters) – Gold prices edged lower on Wednesday as caution prevailed ahead of the U.S. consumer price inflation report that could provide more clarity on the Federal Reserve’s interest rate trajectory.
Spot gold eased 0.1% to $2,675.72 per ounce by 0533 GMT. U.S. gold futures gained 0.3% to $2,690.60.

A line chart titled "Spot gold price in USD per oz" that tracks the metric over time.
A line chart titled “Spot gold price in USD per oz” that tracks the metric over time.
“If the CPI data comes higher, that might send gold lower because that kind of solidifies the view that the Fed more likely will be normalising last year’s dovish policy in 2025,” said Kelvin Wong, OANDA’s senior market analyst for Asia Pacific.
The December data, due at 1330 GMT, will be closely watched by market participants after last week’s blowout jobs report underlined the strength of the U.S. economy and led traders to heavily pare back bets of further Fed easing.
A Reuters poll forecast an annual rise of 2.9% versus 2.7% in November and a monthly increase of 0.3%.
Data on Tuesday showed U.S. producer prices increased moderately in December, but that is unlikely to change views that the Fed would not cut interest rates again before the second half of this year amid labour market resilience.
Traders have fully priced in a pause in rate cut at the Fed’s January policy meeting.
With President-elect Donald Trump set to begin his second term next week, the focus remains on his policies that analysts expect would fuel inflation.
Non-yielding bullion is used as a hedge against inflation, although higher interest rates diminish its appeal.
“If gold prices were to dip further to break out of the November range down below $2,600, the next key level will be around $2,540 and I believe that could be an attractive level for long-term holders to consider,” Wong said.
According to Reuters technical analyst Wang Tao, spot gold may fall towards $2,635.
Spot silver shed 0.2% to $29.83 per ounce and palladium dropped 0.2% to $936.92. Platinum steadied at $935.25.

Reporting by Rahul Paswan in Bengaluru; Editing by Sumana Nandy and Subhranshu Sahu

Share this post :

Facebook
Twitter
LinkedIn
Pinterest

Leave a Reply

Your email address will not be published. Required fields are marked *

Create a new perspective on life

Your Ads Here (365 x 270 area)
Latest News
Categories

Subscribe our newsletter

Purus ut praesent facilisi dictumst sollicitudin cubilia ridiculus.