On Wednesday, gold prices exhibited minimal fluctuations, setting the stage for traders anticipating a barrage of upcoming economic data that might unveil fresh insights into the trajectory of the U.S. central bank's monetary policy. The current spotlight falls on spot gold, experiencing a 0.2% dip to $2,035.97 per ounce by 2:27 p.m. ET (1927 GMT), while U.S. gold futures concluded 0.2% lower at $2047.7.
On Wednesday, gold prices exhibited minimal fluctuations, setting the stage for traders anticipating a barrage of upcoming economic data that might unveil fresh insights into the trajectory of the U.S. central bank's monetary policy. The current spotlight falls on spot gold, experiencing a 0.2% dip to $2,035.97 per ounce by 2:27 p.m. ET (1927 GMT), while U.S. gold futures concluded 0.2% lower at $2047.7.
The ascent of the dollar index introduced a slight nudge upwards, diminishing the allure of bullion for international buyers. Amidst this landscape, Daniel Pavilonis, Senior Market Strategist at RJO Futures, anticipates gold prices to find stability above $2,000, predominantly surging due to prevailing geopolitical uncertainties. These include the U.S. elections next year, potentially prompting money managers to augment their portfolio with gold.
The ongoing session unfolds with subdued activity, and as the week progresses, trading volume is anticipated to dwindle. This anticipatory lull occurs against the backdrop of last week's announcement by the U.S. Federal Reserve, signaling the conclusion of its monetary tightening phase and hinting at potential rate cuts in 2024, a sentiment echoed by Atlanta Fed President Raphael Bostic on Tuesday.
Given the dovish stance on interest rates, gold's appeal thrives, with markets speculating a 79% probability of a rate cut in March, according to the CME FedWatch tool. A short-term outlook posits gold fluctuating between $1,950 and $2,150, as macroeconomic data and correlated expectations surrounding impending U.S. rate adjustments and unforeseen geopolitical risks fuel market volatility, as noted by Intesa Sanpaolo.
Investor anticipation heightens with a slew of U.S. economic data on the horizon, including the eagerly awaited November core personal consumption expenditure (PCE) index report—a key indicator of underlying inflation—scheduled for release on Friday. In parallel movements, silver marked a 1.2% ascent to $24.32 per ounce, while platinum registered a 1.3% increase to $966.35. Palladium, however, experienced a 0.7% decline, settling at $1,214.72.
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