GOLD PRICE CONTINUES LOSING STREAK AS HOT INFLATION PUSHES BACK FED RATE-CUT EXPECTATIONS

avatar
· Views 112



  • Gold price remains under pressure as sticky US CPI data suggests interest rates will stay high.
  • Surging rental and healthcare costs drive price pressures in the US economy.
  • The US Dollar extends its upside amid a risk-off market sentiment, further weighing on Gold. 

Gold price (XAU/USD) continues its five-day losing spell on Wednesday as hot United States inflation data suggests the Federal Reserve (Fed) will hold back from cutting interest rates at its monetary policy meeting in May. The opportunity cost of holding non-yielding assets, such as Gold, has risen as the Fed is expected to keep interest rates at their current level for a longer period. 

The absence of evidence ensuring the return of the underlying inflation to the 2% target has strengthened the need to maintain a hawkish narrative on interest rates. Fed policymakers are not expected to bring down key rates until they see price pressures easing for a decent period. 

The US Consumer Price Index (CPI) grew faster than market expectations due to an uptick in rental and healthcare costs. 

Contrary to market action, US Treasury Secretary Janet Yellen said there is progress in the war against persistent inflation despite surging rental prices on Tuesday


면책 조항: 본 게시글에 표현된 견해는 전적으로 작성자의 견해이며 Followme의 공식 입장을 대변하지 않습니다. Followme는 제공된 정보의 정확성, 완전성 또는 신뢰성에 대해 책임을 지지 않으며, 서면으로 명시적으로 언급되지 않는 한 해당 내용을 기반으로 취해진 어떠한 조치에 대해서도 책임을 지지 않습니다.

이 글이 마음에 드시나요? 작성자에게 팁을 보내 감사의 마음을 전하세요.
댓글 0

더 오래된 의견은 없습니다. 소파를 가장 먼저 잡으십시오.

  • tradingContest