Gold Prices Poised for Second Consecutive Weekly Decline as Traders Reevaluate Rate-Cut Speculations

The Weighty Exchange: Unveiling the Precise Measurement of Gold

Gold Prices Poised for Second Consecutive Weekly Decline as Traders Reevaluate Rate-Cut Speculations

Gold prices were on track for a second consecutive weekly decline on Friday as an unexpected surge in U.S. consumer prices prompted traders to reassess their expectations for interest rate cuts. 

However, bullion managed to recover some of its losses following a decrease in consumer spending.

As of 0427 GMT, spot gold remained flat at $2,003.40 per ounce, with a weekly loss of over 1%. Similarly, U.S. gold futures held steady at $2,015.30 per ounce.

The Weighty Exchange: Unveiling the Precise Measurement of Gold

Jigar Trivedi, a senior analyst at Reliance Securities, highlighted several factors contributing to the subdued sentiment towards gold. 

These include the absence of a “war premium,” withdrawals from gold ETF holdings, a hawkish tone from Fed officials, higher-than-expected consumer prices (CPI), and a potential positive trend in the U.S. dollar.

Recent data revealed ongoing inflationary pressures, with U.S. import prices rising sharply in January and consumer prices surpassing expectations. The market now awaits the U.S. producer price index (PPI) report due at 1330 GMT.

Trivedi suggested that a significant rebound in gold prices is unlikely, with the possibility of prices touching levels around $1970/oz-1960/oz.

Despite Thursday’s modest recovery, where bullion rose about 0.6% following a sharp decline in U.S. retail sales, Federal Reserve (Fed) Bank of Atlanta President Raphael Bostic indicated that he was not advocating for interest rate cuts yet. 

He projected two cuts for 2024, lower than the Fed’s collective projection of three cuts released in December. The Fed is expected to update these forecasts at its next policy meeting, with the first rate cut anticipated in June.

In the broader precious metals market, spot platinum fell by 0.7% to $892.04/oz, palladium dropped by 1.5% to $938.55/oz, while silver edged 0.1% higher to $22.93/oz.

Also Read, Xbox Game Pass Surpasses 34 Million ‘Fully Paid’ Subscribers

Pooja Chauhan

Pooja Chauhan: Your Source for Entertainment and Box Office News Pooja Chauhan is a passionate writer and dedicated journalist specializing in delivering the latest updates and insights from the world of entertainment and box office. With a keen eye for detail and a deep love for cinema, Pooja brings her readers accurate and engaging coverage of all things related to movies, celebrities, and the dynamic world of showbiz. Her commitment to keeping her audience well-informed and entertained makes her a valuable voice in the realm of entertainment journalism. When she's not busy uncovering the latest scoops, Pooja enjoys exploring classic films and indulging in creative writing." Contact us: admin@bollywoodfever.co.in

Leave a Reply