Gold prices remained stable globally today, Thursday, as investors awaited the announcement of U.S. inflation data, absorbing comments from Federal Reserve Board member Christopher Waller regarding interest rate cuts and looking forward to more U.S. economic data to gauge the trajectory of monetary policy. By 05:03 GMT, spot gold had risen 0.1 percent to $2,195.59 per ounce, while U.S. gold futures increased by 0.2 percent to $2,195.10.
Ilya Spivak, Head of Global Macro at Tastylive, noted, "The U.S. Federal Reserve has indicated its desire to cut interest rates, and there are concerns about geopolitical risks still impacting the markets related to wars in Ukraine and the Middle East, which supports gold." He added, "Gold prices have traded within a limited range for most of this month, and surpassing the $2,225 per ounce level could push prices toward $2,300."
Gold reached a record high last week after the U.S. central bank projected three interest rate cuts this year, despite recent high inflation readings. Waller stated yesterday that disappointing recent inflation data reaffirms the need to refrain from the targeted rate cut in the short term. Investors are now awaiting the Core Personal Consumption Expenditures Price Index report scheduled for release on Friday to determine the timing of interest rate cuts.
