[ad_1]
Gold remained near record levels on Thursday, with investors remaining cautious ahead of new data releases. In the United States, markets are awaiting the CPI release later today.
If inflation remains stable or shows signs of cooling, expectations of additional Federal Reserve rate cuts could strengthen, weighing on yields and the dollar and supporting gold.
Conversely, any upside surprise in inflation could reinforce higher yields and lend support to the dollar, potentially capping bullion’s advance.
Beyond the US, several major central banks are set to announce policy decisions today. The Bank of England is expected to deliver a 25-basis-point cut, which would reinforce the relative appeal of non-yielding assets. Conversely, the Bank of Japan is anticipated to raise rates, a move that could partially limit gold’s upside.
At the same time, geopolitical risks continue to underpin gold. Tensions persist in the Middle East and Eastern Europe, with tensions continuing despite ongoing diplomatic efforts. In Latin America, uncertainty has increased after the US moved to halt sanctioned oil shipments. Frictions between Japan and China also remain elevated.
[ad_2]
Source link
