Gold prices saw no significant movement during Thursday’s trading after closing at record levels in the previous session.
Investors are waiting for more U.S. economic data to get clues about the direction of monetary policy.
Topic
Details
The U.S. Federal Reserve has expressed its desire to cut interest rates, and there are ongoing concerns in the markets about geopolitical risks in areas such as Ukraine and the Middle East, which supports its prices.
Gold prices are currently on an upward trend, and breaking the current resistance level at $2225 per ounce could lead gold prices towards the $2300 level.
Currently, central banks are still buying gold to diversify their reserves, which compensates for the weak demand for gold as an investment. The current demand is more based on expectations of a reduction in interest rates in the United States.
Expectations
Investors are awaiting the release of the U.S. core Personal Consumption Expenditures (PCE) Price Index report on Friday to determine when the U.S. central bank may start cutting interest rates. The report is expected to show a 0.3% increase in February, maintaining the annual pace at 2.8%. Investors’ attention will also be focused on the report of weekly initial jobless claims later in the day.