At the beginning of the new trading week, gold continues to move with a positive trend within the sideways range between around 1,930 and 1,980 US dollars per troy ounce, which has existed for around three weeks. So far, prices have reached a high of 1,964.63 US dollars per ounce on Monday morning.
Investors are cautious ahead of the Federal Reserve Bank (Fed) interest rate decision due on Wednesday evening. Last week, some weak U.S. economic data, including the disappointing ISM services PMI and higher-than-expected weekly initial jobless claims, had raised expectations that the Fed will pause its rate hike cycle.
Before the interest rate decision is due, the latest inflation data for May will be reported from the US on Tuesday. Economists expect the consensus that consumer price inflation has fallen further from 4.9 percent in April to 4.1 percent in May. In the core rate, the inflation rate is expected to decline from 5.5 to 5.3 percent. Although the inflation rate has thus declined significantly from its 2022-year high of 9.1 percent reached in June , it is still well above the Fed's two percent target.
According to market observers, gold could benefit from a possible pause by the Fed and from the deteriorating global economic situation this year as a "safe haven". However, with U.S. interest rates likely to remain high for longer, the yellow metal's uptrend could be limited as bond yields look more attractive.
Investors are cautious ahead of the Federal Reserve Bank (Fed) interest rate decision due on Wednesday evening. Last week, some weak U.S. economic data, including the disappointing ISM services PMI and higher-than-expected weekly initial jobless claims, had raised expectations that the Fed will pause its rate hike cycle.
Before the interest rate decision is due, the latest inflation data for May will be reported from the US on Tuesday. Economists expect the consensus that consumer price inflation has fallen further from 4.9 percent in April to 4.1 percent in May. In the core rate, the inflation rate is expected to decline from 5.5 to 5.3 percent. Although the inflation rate has thus declined significantly from its 2022-year high of 9.1 percent reached in June , it is still well above the Fed's two percent target.
According to market observers, gold could benefit from a possible pause by the Fed and from the deteriorating global economic situation this year as a "safe haven". However, with U.S. interest rates likely to remain high for longer, the yellow metal's uptrend could be limited as bond yields look more attractive.