omic data this week led investors to lower their expectations for U.S. interest rate cuts, and pressure on precious metals continued to rise. Gold prices remained stable on Friday, recording their first decline in four weeks.
Spot gold closed down 0.30% at $2,155.70 per ounce. Gold prices fell more than 0.8% this week, marking their first weekly loss since mid-February, after hitting a record high of $2,194.99 last week.
The settlement price of COMEX April gold futures closed down 0.28% at $2,161.5 per ounce.
Data this week showed that U.S. consumer prices rose more than expected in February, and producer prices also showed a certain degree of inflationary stickiness.
Everett Millman, chief market analyst at Gainesville Coins, said, “Gold has already priced in a positive push from expectations of lower interest rates... If inflation starts to move higher again, that means policymakers will have to keep monetary policy tighter for longer. policy." "While gold doesn't particularly like a high interest rate environment, if the reason rates are staying so high is because of overheating inflation...that would naturally mean people will turn to gold again."
Higher-than-expected inflation continues to put pressure on the Federal Reserve to keep interest rates high, putting pressure on gold prices. The non-yielding precious metal is also used as a hedge against inflation.
Expectations of the timing of a rate cut by the Federal Reserve did not stop gold prices from rising. “The timing and pace of Fed rate cuts is a long-term driver for gold. Currently, the Fed needs to be more confident that inflation will return to 2% before it will consider cutting rates. We believe cuts will begin in July this year. The market is pricing in a move from 2024 Price cuts starting in the second half of the year. That is, the pullback in market expectations from March to June may limit price increases. The change of the U.S. ruling party will bring risks to future policies. Amid economic and geopolitical tensions, the stock market A record high. This may make investors more wary of downside risks than upside potential. Volatility is expected to increase as the U.S. election approaches. The risk-off scenario in equities will provide support for gold prices.”
Trade active