PT Solid Gold Berjangka | Gold Set for Weekly Loss as Inflation Delays US Rate-Cut Bets
GOLD EMAS Spot Emas Gold Spot PT SGB Solid Group SG Berjangka Solid Gold Berjangka
Solid Gold Berjangka | Based on the information provided:
- Gold is on track for its first weekly loss in four weeks.
- This change in trajectory is attributed to recent inflation data, which has shifted expectations about when the Federal Reserve might cut interest rates.
- US producer prices rose significantly in February, particularly due to higher fuel and food costs.
- These inflation readings led to increases in Treasury yields and the dollar, both of which are negative factors for gold. Gold, being traded in US currency, doesn’t offer interest, so it tends to perform worse when interest rates rise.
- Markets are now indicating a reduced likelihood of a Fed rate cut in June, dropping from 67% to 53%.
- The Fed is expected to keep borrowing costs unchanged at its upcoming March meeting.
- Despite the potential for a weekly loss, gold is still near record highs, hovering around $2,200 an ounce.
- Factors supporting gold include increased buying in China, purchases by central banks and fund managers globally, as well as geopolitical tensions in the Middle East and Ukraine, and concerns about the US stock market and presidential election.
- As of the time of the report, spot gold was holding steady at $2,112.51 an ounce in Singapore, down 0.8% for the week.
- The Bloomberg Dollar Spot Index rose 0.1%, up 0.5% for the week.
- Other precious metals showed mixed performance: silver edged higher, platinum was stable, and palladium fell.
This information paints a picture of a gold market that is responding to changing expectations regarding inflation and interest rates, while still being influenced by broader economic and geopolitical factors.