Gold reached an all-time high yesterday as traders expect that major central banks will implement interest rate cuts this year while escalating geopolitical tensions drove up demand for bullion as a safe-haven asset.
In this regard, gold prices have seen a strong performance this week. Today’s agenda is packed with key economic events and data releases that could affect the trend in gold prices.
Later today, the Core PCE Price Index figures will be released, followed by a speech from Fed Chair Powell, potentially introducing volatility to the gold market.
Market consensus anticipates a slight decline in the Core PCE Price Index to 0.3% from the previous reading of 0.4%, potentially limiting the appreciation of the greenback in the near term and further bolstering the value of gold. However, a stronger-than-expected inflation reading could fuel some price corrections in gold prices as traders re-evaluate their monetary policy expectations.
At the same time, gold could continue to find support over the long term as interest rate cuts materialize while central bank purchases and geopolitical tensions continue to drive demand.
