Gold prices remained steady on Thursday after hitting their highest levels in more than a month, as weaker U.S. core inflation data bolstered expectations for rate cuts. interest, although news of a ceasefire agreement between Israel and Hamas limited further gains.
Spot gold held steady at $2,696.30 an ounce, at 0301 GMT, after hitting its highest point since December 12 earlier in the session. U.S. gold futures gained 0.3% to $2,725.20.
“The fall in core inflation in the United States has renewed hopes for less restrictive Fed policy this year. Core inflation has slowed unexpectedly, while overall consumer prices n ‘have not shown any significant upside surprises,’ said Jigar Trivedi, senior analyst at Reliance Securities.
“This supported bullion demand as progress in disinflation could prompt the FOMC to ease monetary policy, thereby reducing the opportunity cost of holding unearned assets.
Concerns persist that potential tariffs from the new administration of US President-elect Donald Trump could further exacerbate inflationary pressures.
Central bank officials said data released Wednesday showed U.S. inflation continued to fall, although they noted increased uncertainty in the coming months as they wait for a first look at U.S. policies. incoming Trump administration.
Supporting bullion, the dollar slipped on Thursday to just off its recent highs as cooling U.S. inflation data sent bond yields lower. [US/][USD/]
The prospect of another Fed rate cut this year grew following the data, and interest rate futures traders on Wednesday said there was almost as much chance that the central bank The US will cut rates twice by the end of the year, with the first cut to take place in June.
Separately, Israel and Hamas reached a ceasefire and hostage deal, which reduced the metal’s security appeal, Trivedi said.
Spot silver was down 0.2% at $30.61 an ounce and palladium was down 0.3% at $958.50. Platinum stabilized at $938.25.
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