Gold futures price closed down $18.40 on Monday (December 12) as investors adjusted their positions ahead of US inflation data. At the same time, keep an eye on the outcome of the monetary policy meeting of the Federal Reserve (Fed) and other central banks from around the world.
Gold futures price closed down $18.40 on Monday (December 12) as investors adjusted their positions ahead of US inflation data. At the same time, keep an eye on the outcome of the monetary policy meeting of the Federal Reserve (Fed) and other central banks from around the world.
Comex Gold Futures Contract Delivered February Minus $18.40 To Close At $1,792.30/Oz
Experts have revealed A stronger-than-expected rise in producer price index (PPI) data indicates that Inflation is not slowing enough. which caused the gold to be sold for profit.
The US Labor Department released the PPI, an indicator of inflation on producer spending, for November on Friday. higher than analysts’ expectations and dashed hopes that US inflation had peaked.
Core PPI, which includes food and energy, rose 7.4% in November year-on-year. The headline PPI rose 0.3% in November, above the 0.2% expected by analysts.
Core PPI, which excludes food and energy, rose 6.2% in November year-over-year. That beat the 5.9% consensus analysts had been expecting, and on a month-on-month basis, core PPI rose 0.4% in November, above the 0.2% consensus expected by analysts.
Investors will eagerly await the release of the US Consumer Price Index (CPI) on Dec. 13, while the Fed will hold its monetary policy meeting on Dec. 13-14, the last meeting of the year.
investors expect The Fed will raise interest rates by 0.50% to a range of 4.25 to 4.50% in this round of meetings. after rising 0.75% four consecutive times Meanwhile, Fed Chairman Jerome Powell signaled that the Fed would slow its interest rate hike in December.
The market is keeping tabs on Mr. Powell’s statement. This will indicate the direction of Fed interest rates in 2023, including the release of the official interest rate forecast (Dot Plot) at this meeting. This will signal the Fed’s interest rate outlook through 2025.
