Gold Loses Gains Amidst Fed Rate Hike Expectations
Gold lost ground after four consecutive days of gains but remains near its 100-day moving average amid expectations that lower U.S. inflation will keep pressure on the Federal Reserve's rate hike plans.
Gold prices experienced a slowdown in the latest trading session, following four consecutive days of gains. Investor profit-taking led to a 1.06% decline in gold's value, closing at US$ 4,387.3 per troy ounce on the Comex division of the New York Mercantile Exchange (Nymex). Despite this daily loss, the overall trend remains positive for gold as it approaches its 100-day moving average for the first time since April. Experts note that recent U.S. inflation data, which were lower than expected, have kept pressure on the Federal Reserve (Fed) regarding its monetary policy. Gold has benefited from expectations of lower interest rate hikes due to its non-yielding nature. However, upcoming U.S. economic data and key Fed speeches will be crucial in determining future interest rate dynamics. Additionally, tensions in the Middle East continue as a potential upward risk for inflation, with possible impacts on oil prices and global economics.
Source: Valor Econômico
Source: Valor Econômico