The price of gold has held its ground around $2,020 following a key US event, the Federal Reserve (Fed) policy decision. The decision to maintain the interest rate at 5.25%–5.50% was in line with market expectations at its December meeting. Additionally, the annual Producer Price Index (PPI) ex Food & Energy was reported at 2.2% YoY, slightly lower than the previous figure. Gold traders are now awaiting the release of the weekly Jobless Claims and Retail Sales reports, due later on Thursday.
During the early Asian session on Thursday, the price of gold surged above $2,000. This increase was attributed to the weaker US Dollar and Treasury yield following the Federal Reserve meeting. The US Dollar Index (DXY) dropped sharply, while Treasury yields also decreased. The Fed’s policy decision remained in line with expectations and was dovish on monetary policy guidance.
Looking ahead, gold traders will be closely monitoring the US economic data, particularly the weekly Jobless Claims and Retail Sales reports. In addition, Chinese Retail Sales and Industrial Production data are set to be released on Friday, which could also impact the price of gold. The market will pay close attention to these figures as they continue to assess the impact of economic events on the price of gold.
