Gold is around 1900 after CPI data in U. S.
2023.01.12 08:49
Gold is around 1900 after CPI data in U. S.
By Tiffany Smith
Budrigannews.com – Copper prices remained near a seven-month high amid increased optimism regarding China on Thursday, while gold prices remained around an eight-month high as markets prepared for data that is widely expected to show a further easing in U.S. inflation.
It is widely anticipated that later-day U.S. inflation data will reveal that inflation eased further in December compared to the previous month, necessitating less hawkish Federal Reserve actions following a rapid rise in interest rates through 2022.
Given that it indicates less immediate pressure from high interest rates on non-yielding assets, this scenario is anticipated to have a broadly positive impact on bullion prices. Markets are betting that falling inflation will eventually force the Federal Reserve to halt its current cycle of rate increases.
was steady at $1,876.41 per ounce at 19:06 ET (00:06 GMT), while they were muted at $1,879.50 per ounce. After a strong start to the year, both instruments were trading at their highest level in eight months.
As traders sought gold due to worries about a recession and bets that the value of the dollar had reached its peak, safe haven demand also helped boost the price of gold.
However, despite the yellow metal’s rapid recovery from 2022 lows, the environment remains at its highest level since the 2008 financial crisis. It is anticipated that greater gains in gold will be limited in the near future due to this and uncertainty regarding the location of the U.S. interest rate peak.
Inflation is still well above the Fed’s annual target, even though it is expected to have eased in December. Additionally, Fed members have expressed concern that interest rates may continue to rise, putting pressure on metal markets.
Copper prices fell slightly on Thursday, but they remained just below their highest level since mid-June. In light of increased optimism regarding an economic reopening in China, a major importer, the red metal has gained nearly 10% so far this year.
in early Asian trade, it fell 1% to $4.1730 per pound. In addition, tighter supplies are anticipated to benefit the metal in the near future, as global disruptions rise. 2 Peru, a copper producer, faces political-motivated violence.
This week, China, the largest importer of copper in the world, reopened its borders for the first time in three years. However, an unprecedented rise in COVID-19 cases continues to cloud the nation’s near-term economic outlook.
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