World gold prices have just experienced their first week of decline after 4 consecutive weeks of price increases. For the whole week, this precious metal price decreased by 0.8%.
Last week, the US Consumer Price Index (CPI) report was hotter than expected, weak retail sales and rising PPI had a negative impact on precious metals. Recent economic data shows that inflation remains high.
The market still expects the US Federal Reserve (Fed) to lower interest rates at the June monetary policy meeting, but confidence in the Fed cutting interest rates at this upcoming meeting is gradually weakening. . This week, the Fed will have a policy meeting on March 19-20.
Kitco expert Neils Christensen believes that this week will be a relatively difficult week for the gold market as the Fed discusses future policy directions and provides updated economic forecasts. According to Christensen, any “hawkish” rhetoric regarding a delay in interest rate cuts could create some selling pressure on gold.