PT Rifan Financindo Berjangka – Gold prices rise as traders await CPI data release
Gold rose during the North American session on Tuesday with buyers eyeing the $2,700 mark for the first time since November 25. One of the drivers of the yellow metal’s rise was expectations that the Federal Reserve (Fed) will cut interest rates at its December meeting. At the time of writing, XAU/USD was trading at $2,694, up 1.32%.
US economic data released on the day suggested that small businesses have grown optimistic about the economy, according to a survey by the National Federation of Independent Business. However, traders are focused on the release of US inflation figures on the consumer and producer sides on Wednesday and Thursday, respectively.
Investors appear convinced that the Fed will cut interest rates at its December 17-18 meeting. Data from the CME FedWatch Tool suggests that futures are pricing in an 86% chance that Fed Chair Jerome Powell and company will cut the federal funds rate by 25 basis points (bps).
Source: FXStreet
Gold Hits Two-Week High in The Run-Up to US Inflation Data
Gold prices hit a two-week high on Tuesday, underpinned by rising geopolitical tensions and expectations of a third U.S. rate cut by the Federal Reserve next week, while the market’s gaze shifted to Wednesday’s U.S. inflation data.
Spot gold was up 1.3% at $2,692.32 per ounce at 01:41 p.m. ET (1841 GMT). U.S. gold futures settled 1.2% higher at $2,718.40.
The spotlight is moving to the U.S. Consumer Price Index (CPI) on Wednesday, which is expected to rise by 0.3% in November, according to a Reuters poll, and the Producer Price Index (PPI) on Thursday, both pivotal in shaping the Fed’s rate-cut decisions.
With two U.S. rate cuts so far this year, traders predict an 86% chance of a further 25-basis-point cut at the Fed’s Dec. 17-18 meeting, according to the CME FedWatch tool, opens new tab.
Spot silver added 0.7% to $32.04 per ounce, platinum rose 0.5% to $940.90 and palladium was down 0.4% at $969.52. PT Rifan Financindo Berjangka.
Source : Reuters