Gold stabilizes above $2300 following a recent decline: Gold prices stabilized before the announcement of the American data,
which is scheduled to be released later this week,
which could shed more light on the Federal Reserve’s interest rate path.
Bullion traded near $2300 per ounce after dropping about 3% in the first two sessions of the week,
As tensions in the Middle East eased, demand for a safe haven was reduced.
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U.S. monetary policy
The market now shifts its focus back to U.S. monetary policy.
The Personal Consumption Expenditures index, the Federal Reserve’s preferred gauge for inflation,
is expected to be released on Friday and show that price pressures remained high in March.
This could support expectations favoring delaying interest rate cuts,
representing a headwind for gold, yielding no return.
The likelihood of interest rate cuts in the United States in June, which was the base scenario earlier this year,
has sharply declined over the past few weeks, with the market now pricing only a 16% chance.
Some interest market traders believe the Federal Reserve will not cut interest rates this year.
Gold has remained at about 17% since mid-February despite signs pointing
to a delayed decision by the Federal Reserve that was long awaited.
Instead, the metal has been supported by increasing geopolitical risks,
central bank purchases, and a sharp increase in buying by individual Chinese investors.
The spot price of gold settled at $2,315 per ounce.
Gold stabilizes above $2300 following a recent decline