Gold loses momentum
Gold is practically flat with investors awaiting the outcome of the Federal Reserve’s meeting for more clues on the bank’s monetary policy outlook.
US Producer Prices remained flat in November, and grew at a 0.9% pace year-on-year, falling short of market expectations of 0.2% and 0.9% increases respectively. This has triggered a moderate negative impact on the USD.
Tuesday’s data showed an unexpected increase in US consumer inflation in November, which has cooled expectations of a Fed pivot in the first quarter of 2024.
US Consumer Price Index (CPI) edged up 0.1% in November, against market expectations of a flat performance, while year-on-year the CPI eased to 3.1% from 3.2% in October.
The core CPI inflation, which excludes volatile food and energy prices, met expectations and remained steady at 4.0% year-on-year.
November’s inflation, coupled with the strong employment seen on Friday, reveals that the Fed faces a serious challenge to bring the CPI down to the 2% target.
In this scenario, investors are holding their breath ahead of the Federal Reserve’s monetary policy decision, due later on Wednesday.
The Fed is widely expected to leave its benchmark rate at the current 5.25 -5.5% band. The main attraction of the event will be the interest-rate projections and Chairman Powell’s comments at the press conference.
In China, a meeting of top leaders has failed to deliver any significant economic stimulus measures, which has disappointed investors, dampening the market mood.
🟢Crucial Price Zones:
C: $1966/1955/1947 BZ | ⚠️ Exit NAP
R: $1996/2009/2019 SZ | ⚠️ Exit NAP
Gold is practically flat with investors awaiting the outcome of the Federal Reserve’s meeting for more clues on the bank’s monetary policy outlook.
US Producer Prices remained flat in November, and grew at a 0.9% pace year-on-year, falling short of market expectations of 0.2% and 0.9% increases respectively. This has triggered a moderate negative impact on the USD.
Tuesday’s data showed an unexpected increase in US consumer inflation in November, which has cooled expectations of a Fed pivot in the first quarter of 2024.
US Consumer Price Index (CPI) edged up 0.1% in November, against market expectations of a flat performance, while year-on-year the CPI eased to 3.1% from 3.2% in October.
The core CPI inflation, which excludes volatile food and energy prices, met expectations and remained steady at 4.0% year-on-year.
November’s inflation, coupled with the strong employment seen on Friday, reveals that the Fed faces a serious challenge to bring the CPI down to the 2% target.
In this scenario, investors are holding their breath ahead of the Federal Reserve’s monetary policy decision, due later on Wednesday.
The Fed is widely expected to leave its benchmark rate at the current 5.25 -5.5% band. The main attraction of the event will be the interest-rate projections and Chairman Powell’s comments at the press conference.
In China, a meeting of top leaders has failed to deliver any significant economic stimulus measures, which has disappointed investors, dampening the market mood.
🟢Crucial Price Zones:
C: $1966/1955/1947 BZ | ⚠️ Exit NAP
R: $1996/2009/2019 SZ | ⚠️ Exit NAP
