Gold prices fell to around $2,670 per ounce on Wednesday
Gold prices fell to around $2,670 per ounce on Wednesday, reversing gains from the previous session as investors grew cautious ahead of US consumer inflation data later today. Any signs of resurging inflation could possibly spur further cautious adjustments to the Federal Reserve’s rate-cut expectations. On Tuesday, the metal found some support after a softer-than-expected US PPI report, sparking faint hopes that the Fed might have room for additional rate cuts this year.
Meanwhile, with President-elect Donald Trump set to begin his second term next week, attention is also on his pro-inflationary economic policies, amplified by tariff threats, which could strengthen the case for a hawkish Fed. Higher borrowing costs increase the opportunity cost of holding non-interest-bearing bullion, pressuring gold demand. Additionally, rising energy service costs in Europe have further weakened the case for lower rates by the ECB.(Cay)
Source:Trading Economi