Gold prices held its recent gains above $2,690 per ounce on Thursday
Gold prices held its recent gains above $2,690 per ounce on Thursday, its highest level in over a month, as easing underlying inflation in the US renewed hopes of a less restrictive Fed policy this year. The core inflation unexpectedly slowed, while headline consumer prices showed no significant upside surprises. This boosted demand for bullion, as progress in disinflation could prompt the FOMC to ease monetary policy, reducing the opportunity cost of holding non-yielding assets. Markets now anticipate the Fed will deliver 40 bps of rate cuts by year-end, up from an expected 31 bps before the data.
However, some Fed officials noted that the fight against inflation is not over. Concerns about persistent price pressures were heightened by pro-inflationary policies proposed by President-elect Trump, including tariffs on key trade partners and increased deficit spending. Elsewhere, Israel and Hamas reached a ceasefire and hostage agreement, reducing some safety appeal of the metal.(Cay)
Source: Trading economi
