Gold stabilises, and the dollar rises as markets await the Fed’s preferred inflation data: Gold prices stabilised on Wednesday, March 27,
due to the dollar’s rise. Still, the precious metal traded within a narrow range
as investors awaited further indications of the US Federal Reserve’s policy.
Topics
Gold stability
Gold in spot transactions stabilised by 0.1% to $2181 per ounce.
The dollar index rose 0.2% against a basket of major currencies,
making buying gold more expensive for holders of other currencies.
Gold prices have risen more than 5% so far this year and reached a record high last week,
supported by increased bets on the US Federal Reserve’s shift towards monetary easing,
continued demand for the precious metal as a safe haven,
and central banks’ bullion purchases amid geopolitical tensions.
Fed’s direction
The Fed kept the interest rate unchanged between the range of 5.25% and 5.5% last week
and maintained its expectations for 3 cuts by the end of the year.
Investors are now awaiting the US Personal Consumption Expenditures (PCE) Price Index data
set to be released on Friday to see when the Fed might start cutting interest rates.
According to the FedWatch service, traders estimate a 72% chance that the Fed will start cutting interest rates in June.
Gold stabilises, and the dollar rises as markets await the Fed’s preferred inflation data.