Gold Hovers Near Monthly High Amid U.S. Inflation Data
Gold prices remain steady as core inflation reports in the U.S. fuel interest rate cut expectations.
Gold prices remained stable today, maintaining a position near the highest levels recorded in over a month.
This favorable position comes following U.S. core inflation data that has bolstered hopes of an impending interest rate cut by the Federal Reserve.
In spot markets, gold reached $2,696.30 per ounce as of 0301 GMT, having reached a peak not seen since December 12 earlier in the session.
Meanwhile, U.S. gold futures saw a 0.3% increase, trading at $2,725.20.
Financial analyst Jigar Trivedi from Reliance Securities commented, 'The unexpected slowdown in core inflation in the U.S. has renewed hopes for a less restrictive policy from the Federal Reserve this year.
The core inflation deceleration, coupled with the absence of significant upward surprises in consumer prices, has bolstered demand for bullion, as the Federal Open Market Committee may be prompted to relax monetary policy.'
Despite these developments, concerns persist regarding the potential for new tariffs from the incoming administration of President-elect Donald Trump, which could exacerbate inflationary pressures.
Officials from the Federal Reserve noted that yesterday's data confirmed the continuing retreat of inflation, occurring amidst ongoing uncertainty as the financial world keenly awaits signals regarding the policy direction of Trump's new administration.
The probability of the Federal Reserve lowering interest rates this year has subsequently increased.
In other precious metals markets, silver fell 0.2% in spot trading to $30.61 per ounce, palladium declined 0.3% to $958.50, while platinum remained steady at $938.25.
This favorable position comes following U.S. core inflation data that has bolstered hopes of an impending interest rate cut by the Federal Reserve.
In spot markets, gold reached $2,696.30 per ounce as of 0301 GMT, having reached a peak not seen since December 12 earlier in the session.
Meanwhile, U.S. gold futures saw a 0.3% increase, trading at $2,725.20.
Financial analyst Jigar Trivedi from Reliance Securities commented, 'The unexpected slowdown in core inflation in the U.S. has renewed hopes for a less restrictive policy from the Federal Reserve this year.
The core inflation deceleration, coupled with the absence of significant upward surprises in consumer prices, has bolstered demand for bullion, as the Federal Open Market Committee may be prompted to relax monetary policy.'
Despite these developments, concerns persist regarding the potential for new tariffs from the incoming administration of President-elect Donald Trump, which could exacerbate inflationary pressures.
Officials from the Federal Reserve noted that yesterday's data confirmed the continuing retreat of inflation, occurring amidst ongoing uncertainty as the financial world keenly awaits signals regarding the policy direction of Trump's new administration.
The probability of the Federal Reserve lowering interest rates this year has subsequently increased.
In other precious metals markets, silver fell 0.2% in spot trading to $30.61 per ounce, palladium declined 0.3% to $958.50, while platinum remained steady at $938.25.