Friday’s decrease in gold prices was expected to be the second in as many weeks, as traders reevaluated their expectations of a rate cut in response to unexpectedly high U.S. consumer prices. However, bullion recovered some of the losses after consumer spending declined.
Spot gold was unchanged at $2,003.95 per ounce, but it had dropped by over 1% this week.
American gold futures increased by 0.1% to $2,016.00 an ounce.
On Thursday, gold saw a 0.6% increase when U.S. Commerce Department data revealed that retail sales fell 0.8% in February of 2023, the largest decline since that same month. Retail sales were predicted by Reuters polled economists to decline by 0.1%.
According to further statistics, the number of initial unemployment claims decreased by 8,000 to a seasonally adjusted 212,000 for the week ending February 10, which was marginally less than the 220,000 projection. Due to rising prices for gasoline and other items, U.S. import prices rose in January for the first time in almost two years.
President of the Federal Reserve Bank of Atlanta Raphael Bostic stated on Thursday that although the U.S. central bank had made significant strides in reducing inflationary pressures, he was not yet prepared to advocate for interest rate reductions due to continuing dangers.
In contrast to the Fed’s collective ‘dot plot’ prediction of three cuts revealed in December, Bostic stated he had pencilled in only two cuts for 2024. During its policy meeting the following month, the U.S. Fed will revise those projections.
Despite statistics showing that consumer prices increased more than anticipated in January, Chicago Fed President Austan Goolsbee issued a warning against postponing rate decreases for an extended period of time.
The focus now turns to the US Producer Price Index data, which is scheduled for 1330 GMT.
Spot silver increased 0.2% to $22.94, spot platinum dropped 0.5% to $893.51/Oz, and palladium remained stable at $953.68.
For feedback and suggestions, write to us at editorial@iifl.com
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Securities Support WhatsApp Number
+91 9892691696
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.