iifl-logo-icon 1
IIFL

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

Safe Haven Slump: Gold at Lowest Point in Two Months

15 Feb 2024 , 10:20 AM

As investors evaluated U.S. Federal Reserve officials' ambivalent comments regarding January's hotter-than-expected inflation figures, which led to a retreat in expectations of earlier and more significant interest rate decreases, gold prices maintained close to a two-month low on Thursday.

Spot gold remained unchanged at $1,992.77 per ounce (Oz), having fallen to its lowest level since Wednesday, December 13.

At $2,004.60/Oz, U.S. gold futures were likewise unchanged.

President of the Chicago Fed Austan Goolsbee stated on Wednesday that the central bank should be cautious about delaying rate cuts for an extended period of time and that the Fed's path back to its 2% inflation target rate would still be on track even if price increases run a little hotter than anticipated over the coming months.

Goolsbee's comments were made in response to Tuesday's unexpectedly high increase in U.S. inflation, which revealed that the consumer price index (CPI) increased 3.1% annually, exceeding estimates of a 2.9% increase.

Following the release of the CPI figures, gold fell 1.4%, marking the largest daily loss since December 4.

Vice Chair of the Fed for Supervision The Fed, according to Michael Barr, is still optimistic, but the January CPI data indicates that the road back to 2% inflation in the US 'may be a bumpy one.'

As of right now, traders are pricing in 97 basis points (bps) of rate cuts this year, up from 85 bps early on Wednesday. The first of these cuts will probably occur in June. In December, the Fed produced a 'dot plot' that indicated three quarter-point rate decreases in 2024.

The focus is now on the producer price index (PPI) data that is due on Friday and the U.S. retail sales data that is due at 1330 GMT. This week, there will be at least three Fed speakers.

Spot silver declined 0.1% to $22.35, spot platinum fell 0.3% to $886.46/Oz, while spot palladium slid 0.5% to $929.72.

For feedback and suggestions, write to us at editorial@iifl.com

Gold and silver prices today: Yellow metal recovers after heavy sell-off;  price rises by 1.23% - BusinessToday

Related Tags

  • CPI
  • FED
  • gold
  • inflation
  • interest rates
sidebar mobile

BLOGS AND PERSONAL FINANCE

Images
16 Apr 2024   |   11:02 AM
Images
16 Apr 2024   |   09:31 AM
Images
16 Apr 2024   |   09:29 AM
Images
15 Apr 2024   |   12:16 PM
Read More
Knowledge Centerplus
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Knowledge Centerplus

Follow us on

facebooktwitterrssyoutubeinstagramlinkedin

2024, IIFL Securities Ltd. All Rights Reserved

ATTENTION INVESTORS
  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

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.

RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.

closeIcon

Get better recommendations & make better investments

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp