2024-01-11 22:18:14
The U.S. consumer price index (CPI) in December was higher than expected, which may reduce the possibility of the Federal Reserve (Fed) cutting interest rates in March, thus boosting the U.S. dollar and government bond yields, making Thursday (11th) goldGiving back gains.
- New Yorkgold futuresfell 0.4% to close at $2,019.3 per ounce
- goldSpot prices fell 0.4% to US$2,014.89 per ounce.
The U.S. consumer price index rose 3.4% year-on-year in December, higher than the 3.1% increase last month, which may cause the Fed to postpone a much-anticipated interest rate cut in March. After the announcement of the CPI, the US dollar and government bond yields expanded and rose.
Tai Wong, an independent metals analyst in New York, said that as traders still believe that interest rates will be cut in March, the stronger-than-expected CPI should be scaled back.goldperformance, but gold prices were just barely lower, with the market looking forward to tomorrow’s Producer Price Index (PPI) showing weakness.
The U.S. Department of Labor reported that the number of initial claims for state unemployment benefits decreased by 1,000 last week (ending January 6) to 202,000 (seasonally adjusted).
According to the CME FedWatch tool, traders expect the probability of the Fed raising interest rates in March to be 66%, compared with 71% before the CPI announcement.Rising interest rates are detrimental to assets that do not yield interest, such asgold。
The market will turn to focus on the PPI released on Friday to explore the Fed’s interest rate outlook.
However, Daniel Ghali, commodity strategist at TD Securities, believes that the PPI data will not be an important factor in thegoldGenerate significant market drivers.
The Citi report stated: “The People’s Bank of China continues to build positionsgoldso Asian physical demand seems set for 2024goldThe market environment has become more constructive. “
The Citi report stated: “The People’s Bank of China continues to build positionsgoldso Asian physical demand seems set for 2024goldThe market environment has become more constructive. “
Spot goodssilverIt fell 1.6% to $22.50 an ounce on Thursday.stipendIt fell 1.9% to $980.17 an ounce. Platinum fell 1% to $909.76 an ounce.
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