Gold prices are currently trading in a narrow range today, Tuesday, slanting towards the rise, as the markets await this week’s US inflation data, as the next trend is likely to depend on these data, represented by the personal consumption expenditures index, which is the Federal Reserve’s preferred indicator for measuring inflation, and expectations indicate a reduction from 0.4% to 0.3% on the monthly level and stable at the annual level at 2.8% levels. These data are expected to give insight into the timing of the first interest rate adjustment by the US Federal Reserve this year.
It seems that gold lacks new incentives after the past significant rises and historical peaks
Goldman Sachs also expects commodity prices to rise this year as major central banks signal interest rate cuts, as they expect gold to rise to $2,300 an ounce by the end of 2024, supported by this rate cut and also ongoing geopolitical tensions.
The recent statements issued by the Federal Reserve at its last meeting, which confirmed their intention to reduce interest rates by three-quarters of a percentage point by the end of the year despite recent inflationary pressures, pushed gold to record highs last week and achieve a new peak near the $2,222 levels. per ounce.
So far, markets are pricing in a 70% chance that the Federal Reserve will start cutting interest rates in June.
