Home Business News Gold rebounds on softer PPI data and political uncertainty

Gold rebounds on softer PPI data and political uncertainty

15th Jan 25 12:17 pm

Gold edged higher, building on the previous session’s gains as the U.S. Dollar continued to slide following the release of softer U.S. Producer Price Index (PPI) data.

This, combined with a pause in the recent surge of US Treasury bond yields, has provided strong support for the precious metal.

Market participants have been closely monitoring economic indicators this year, as they provide critical insights into potential shifts in the Federal Reserveโ€™s monetary policy.

Despite this upward movement, caution prevails among investors ahead of todayโ€™s U.S. consumer inflation data. Any signs of resurging inflation could prompt significant adjustments to Federal Reserve rate-cut expectations, which may weigh on gold prices in the near term.

With Trump set to begin his second term, market uncertainty could resurface, potentially driving safe-haven demand for gold. The precious metalโ€™s appeal is further supported by ongoing central bank purchases, persistent geopolitical tensions, and concerns over potential trade wars.

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