Gold remains weak, focus on jobless claims
Gold price advances during Wednesday’s North American session, sponsored by mixed US economic data. Nevertheless, the non-yielding metal remained slightly subdued as Federal Reserve (Fed) Chair Jerome Powell crossed the wires. The XAU/USD trades at $2,652, up 0.35%.
Powell said the US economy is in good shape, adding that September’s rate cut was a message to support the labor market. He said that despite showing progress, it’s premature to declare victory on inflation, and the US central bank could be cautious in setting monetary policy.
Recently, inflation has proved to be stickier than expected. The latest three readings indicate that the disinflation process has stalled. Despite ticking up a tenth, prices remain far from hitting the Fed’s 2% goal.
Other officials crossed the newswires. St. Louis Fed President Alberto Musalem suggested that the time to slow or pause rate cuts might be approaching. He noted that the labor market aligns with full employment and expressed confidence that inflation could reach the 2% target within the next two years.
Meanwhile, Richmond Fed President Thomas Barkin stated that the risks to inflation and maximum employment appear balanced.
Source: FXStreet
