• About
  • Contact
Wednesday, July 2, 2025
Gold Prices
No Result
View All Result
  • News
  • Historical
  • Contact
  • News
  • Historical
  • Contact
No Result
View All Result
Gold Prices
No Result
View All Result
Home News

Fed’s confidence in easing inflation propels gold prices forward

Luke Meyer by Luke Meyer
February 19, 2024
in News
0
Fed’s confidence in easing inflation propels gold prices forward

Gold price continues to rise, extending its recovery in a holiday-shortened week, despite dwindling expectations of rate cuts by the Federal Reserve (Fed). This comes as a surprise, given the persistent strength of the US Dollar. The rise in the Producer Price Index (PPI) in January and the Consumer Price Index (CPI) data prompted speculation of ongoing sticky core Personal Consumption Expenditure price index (PCE) data, but investors believe that the jump in PPI data was merely due to seasonal adjustments.

Additionally, Raphael Bostic, the President of the Atlanta Federal Reserve Bank, has projected two rate cuts starting in the summer due to progress in underlying measures of inflation. His comments have eased the opportunity cost of holding non-yielding assets such as Gold. Despite concerns about inflationary pressure, this has bolstered the Gold price.

The US Dollar Index (DXY) has seen a decline, pushing the Gold price to climb as high as $2,020. However, the surprise rise in consumer price inflation has led to a significant shift in market expectations regarding the timing of Fed rate cuts. This, in turn, has affected the trajectory of Gold prices.

In technical terms, the Gold price has recovered to near the 20-day Exponential Moving Average (EMA) and may see a bullish outlook if it manages to sustain above this level. However, the downward-sloping trendline from December’s high could pose a barrier to further price increases.

In addition to these factors, the extensive use of Gold as a store of value and a hedge against inflation and depreciating currencies, along with central banks’ increasing Gold reserves, have contributed to the recent surge in Gold prices. The inverse correlation between Gold and the US Dollar and US Treasuries, as well as its status as a safe-haven asset, have also influenced its recent price movements.

The upcoming Federal Reserve Open Market Committee (FOMC) minutes for January’s policy meeting and the preliminary S&P Global Manufacturing PMI for February will be key events to watch in the coming week.

Overall, Gold prices have seen a significant increase due to a combination of factors, including inflation concerns, ongoing economic recovery, and market sentiment towards the US Dollar and other safe-haven assets. This has prompted investors to closely monitor the developments in Gold markets in the coming days.

ShareTweetPin
Luke Meyer

Luke Meyer

Luke Meyer stands as a distinguished expert in gold investing, committed to delivering top-tier information on gold prices to investors. With a rich background in the financial sector, Luke possesses a profound grasp of the gold market dynamics. His expertise isn't limited to market analysis; it also encompasses understanding economic trends and their influence on gold prices. At GoldPrices.org, he aims to offer precise and current insights, guiding investors to make informed choices. Luke's clear, engaging writing and rigorous research make him an authoritative source for anyone keen on understanding gold investing.

Related Posts

Gold Price Prediction: Bullish Trend Strengthens as New Resistance Level Approaches
News

Gold Price Prediction: Bullish Trend Strengthens as New Resistance Level Approaches

October 31, 2024
Analyzing Gold Demand Trends in the Third Quarter of 2024
News

Analyzing Gold Demand Trends in the Third Quarter of 2024

October 30, 2024
Gold price hits new all-time high
News

Gold price hits new all-time high

October 30, 2024
Gold Price Surges to 50/oz with Historic  Billion Inflows into Gold Funds
News

Gold Price Surges to $2750/oz with Historic $3 Billion Inflows into Gold Funds

October 29, 2024
Top 4 Gold Investing Mistakes to Avoid in November
News

Top 4 Gold Investing Mistakes to Avoid in November

October 29, 2024
Best Time to Buy Gold: Shubh Muhurat, Date, Gold Prices, and More
News

Best Time to Buy Gold: Shubh Muhurat, Date, Gold Prices, and More

October 28, 2024
Load More
Next Post
Incoming Data: Catalyst for Short Covering Rally – TDS Analysis

Incoming Data: Catalyst for Short Covering Rally - TDS Analysis

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular News

  • 1980 Gold Prices Reach Record Highs

    1980 Gold Prices Reach Record Highs

    0 shares
    Share 0 Tweet 0
  • Gold Prices in 1970: A Historic Surge

    0 shares
    Share 0 Tweet 0
  • Gold Plummets and Soars: The Dramatic 2008 Price Rollercoaster

    0 shares
    Share 0 Tweet 0
  • Gold Soars to All-Time High in 2011

    0 shares
    Share 0 Tweet 0
  • Gold Price Chart: 100-Year Historical Trends and Analysis

    0 shares
    Share 0 Tweet 0

By Categories

  • History
  • Investing
  • News

GoldPrices.org is your go-to resource for all things related to gold prices. This comprehensive website offers up-to-date information on current gold prices, providing valuable insights for investors and enthusiasts alike. Delve into the fascinating history of gold prices, explore insightful news, and analyze detailed charts and data. Whether you're a seasoned investor or just curious about the gold market, GoldPrices.org offers a rich repository of information to help you stay informed and make educated decisions.

Recent News

  • Gold Price Prediction: Bullish Trend Strengthens as New Resistance Level Approaches
  • Analyzing Gold Demand Trends in the Third Quarter of 2024

Our Social Media

  • About
  • Contact

© 2023 Gold Prices

No Result
View All Result
  • News
  • Historical
  • Contact

© 2023 Gold Prices