PT Solid Gold Berjangka | Gold Gains as Traders Assess Fed’s Rate Path After US Data

02:08 26 January in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP


Solid Gold Berjangka | The provided information is a snapshot of the current state of the gold market and its relationship with recent economic data in the United States. Here’s a summary:

  1. Gold Price Movement: Gold prices advanced as traders analyzed stronger-than-expected US economic data to glean insights into the Federal Reserve’s interest-rate trajectory.
  2. US Economic Growth: The US economy expanded in the fourth quarter, surpassing forecasts. Resilient consumer spending played a significant role in achieving the growth, resulting in the strongest year of growth since 2021. Gross domestic product (GDP) increased at a 3.3% annualized rate.
  3. Inflation Data: A key measure of underlying inflation rose to 2%, aligning with the Federal Reserve’s target. This data is crucial as it influences the central bank’s decision-making on interest rates.
  4. Market Reaction: Treasury yields edged lower after the economic data release. Swap traders maintained a less-than-50% chance for a rate reduction by the Federal Reserve in March. Typically, higher interest rates are viewed negatively for non-yielding assets like gold.
  5. European Central Bank (ECB): The European Central Bank kept interest rates unchanged for a third consecutive meeting. Traders increased their bets on an ECB rate cut in April.
  6. Gold Price Range: The price of gold has remained in a tight range as traders reassess the timing and size of the Federal Reserve’s potential pivot to monetary easing. Economic readings and remarks from policymakers are key factors influencing this assessment.
  7. Upcoming Focus: Traders are eagerly awaiting the release of the core personal consumption expenditures (PCE) index, scheduled for Friday. The PCE is the US central bank’s preferred gauge of underlying inflation, and its results will provide further clues about the Federal Reserve’s potential future actions.
  8. Gold Price at the Time of Report: The article mentions that gold rose 0.5% to $2,023.02 per ounce as of 9:53 a.m. in New York.

Overall, the information highlights the interplay between economic data, central bank policies, and their impact on gold prices, emphasizing the importance of upcoming indicators in shaping market expectations.