Home Business News Gold steady ahead of economic data this week

Gold steady ahead of economic data this week

19th Dec 23 10:58 am

Gold prices recorded limited changes on Monday despite some volatility. After central banks’ decisions last week, traders could focus on inflation data in the US, the euro area, and the UK this week.

The softer stance of the Federal Reserve could support the market while sliding treasury yields could fuel gold’s attractiveness and could help maintain its uptrend. Markets continue to price in an early interest rate cut, despite Federal Reserve officials downplaying such expectations.

In Europe, difficult economic conditions could continue to weigh on sentiment. As a result, investors could continue to favor gold as a hedge.

In the US, the GDP data release this week could also affect investors’ expectations as some concerns remain about the impact of high interest rates on the economy.

In addition, geopolitical tensions in the Middle East and the escalating risks in the Red Sea could further drive investors towards safe-haven assets while central banks could shift away from the declining US dollar toward gold.

While gold could see a strong uptrend over the medium to long term, prices could still pull back over the short term. The week’s average price remains around 2011 dollars while the year average is still hanging around the 1900s mark showing some downside risks.

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