Gold Prices Stay High Amid Steady US Inflation Data
Solid ECN – Gold prices remained above $2,040 an ounce last Friday, marking the second week of gains. This trend follows the latest U.S. inflation data, which met expectations and continued to support the anticipation of Federal Reserve interest rate reductions this year. The recent data revealed that core PCE prices in the U.S., an inflation measure closely watched by the Fed, increased by 0.4% month-over-month in January. This is a jump from the 0.1% rise seen in December, aligning with forecasts.
Furthermore, New York Fed President John Williams commented that he anticipates the central bank will lower interest rates later in the year, driven by decreasing inflation and a stable economy. He also mentioned that he doesn't foresee circumstances requiring another Fed rate hike.
Currently, the market anticipates roughly a two-thirds likelihood of a Fed rate reduction in June, with expectations for no changes in March and May.