Gold Rises as Inflation Slows – December 26-2023

On Tuesday, gold rose above $2,060 an ounce. This continues the trend from last week. The rise is mainly due to a weaker dollar and lower bond yields. These factors are a result of easing US inflation. This suggests that the Federal Reserve may reduce interest rates next year.

Key data points include:

• The core PCE index, the Fed’s preferred inflation measure, fell to 3.2% in November. This is down from 3.4% in October and lower than the expected 3.3%.
• Figures from Thursday showed weaker-than-expected US economic growth in the third quarter.
• There was a slight rise in unemployment benefit claims in the most recent period.

Bank of Japan Governor Kazuo Ueda said on Monday that the chance of reaching the 2% inflation target is “gradually rising.” This raises hopes for potential policy normalization.

About The Author

Ethan O. Miller

Ethan O. Miller is a seasoned Forex analyst. His insightful articles offer a unique perspective on currency trends, aiding both novice and experienced traders in navigating the Forex market.

See author's posts