PT Solid Gold Berjangka | Gold Holds Two-Day Gain as Markets Await Key US Inflation Data

01:57 27 March in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP


Solid Gold Berjangka | This news update from Bloomberg outlines several key factors influencing the price of gold:

  1. Investor Focus on US Data: Gold has seen a two-day rally, remaining close to its record highs. Investor attention is shifting to upcoming US data releases later in the week. These data points could provide insights into the nation’s monetary policy direction, particularly regarding potential monetary easing by the Federal Reserve.
  2. Upcoming US Data Releases: Traders are preparing for the release of the Federal Reserve’s preferred inflation gauge on Friday. This release, occurring when markets are closed, is expected to show that inflation likely remained high in February. This data, coupled with other strong readings on the US economy, such as an increase in durable goods orders and rapid home-price growth, could impact market expectations for rate cuts.
  3. Impact of Stubborn Inflation: If the data indicates persistent inflation, US policymakers may adjust their stance on potential rate cuts for the year. Higher borrowing costs, which often accompany measures to curb inflation, can be negative for non-interest-bearing assets like gold.
  4. Haven Buying: Gold has also benefited from haven buying, as investors seek safe-haven assets amid concerns about potential escalations in conflicts in regions like the Middle East and Ukraine.

Here are the specific details mentioned in the update:

  • Gold Price: Spot gold was reported as steady at $2,178.56 an ounce as of 8:19 a.m. in Singapore. This follows a rise on Tuesday of as much as 1.3%, although gains were later pared.
  • Dollar Index: The Bloomberg Dollar Spot Index was reported as flat.
  • Other Precious Metals: Silver and platinum were noted as little changed, while palladium edged lower.

These factors collectively contribute to the current state of the gold market, with a focus on upcoming US economic data and its potential impact on monetary policy and inflation expectations.