Gold prices didn’t change much on Wednesday because investors are being careful as they wait for important news about U.S. inflation. This news might help them understand what the Fed (the U.S. Federal Reserve) might do with interest rates.
Here are the key points:
– The price of spot gold went down by 0.1% to $2,672.93 per ounce according to the latest data. Meanwhile, U.S. gold futures went up by 0.3% to $2,689.60.
– Investors are looking forward to the Consumer Price Index (CPI) data that will be released at 1330 GMT. This data will help them guess how the Fed might change interest rates in the future. If the data shows higher inflation than expected, the Fed might not lower interest rates this year.
– A recent survey predicted inflation would rise by 2.9% this year, slightly up from 2.7% last year, and that prices would rise by 0.3% from last month.
– Gold prices increased on Tuesday after it was reported that the Producer Price Index (PPI) went up by 3.3% from a year ago. This news helped to lower the U.S. dollar.
– Traders believe the Fed will keep interest rates steady in its meeting later this month.
– With Donald Trump starting his second term next week, many are curious about his policies, which might cause inflation to go up.
– Gold is often bought as a safeguard against inflation, but when interest rates rise, it can become less attractive.
– The SPDR Gold Trust, which is the largest gold-backed ETF, reported that its gold holdings dropped by 0.23%, falling to 872.52 tonnes from 874.52 tonnes.
– An expert noted that spot gold might drop to around $2,635 per ounce.
– Spot silver fell by 0.4% to $29.78 per ounce, while palladium prices stayed the same at $938.23. Platinum prices increased by 0.3% to $937.66.
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