Gold Gains Traction as Dollar Softens, U.S. Inflation Data in Spotlight

18 December 2023

Gold prices saw a modest increase on Monday, primarily influenced by a weaker dollar, as investors’ attention is now on key U.S. inflation data that might offer insights into the Federal Reserve’s future interest rate decisions. Spot gold rose 0.2% to $2,022.19 per ounce, while U.S. gold futures held steady. Market analysts highlight a cautious but bullish sentiment among traders, buoyed by factors such as softer monetary policies, particularly from the Fed, and ongoing geopolitical tensions…

With the Fed’s recent pause in rate hikes and anticipation of a potential cut in March, lower bond yields and interest rates are making gold more attractive. Investors are keenly awaiting further U.S. economic reports, including the November core personal consumption expenditure index, to gauge future trends, with predictions suggesting gold prices might average around $2,050 an ounce in 2024.

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