Gold price is stuck in a sideways movement as traders await cues from the US Personal Consumption Expenditures (PCE) Price Index, which is the Federal Reserve’s preferred inflation gauge. The market is cautious ahead of this crucial data release, with investors hesitant to make significant moves until they have more clarity on the Fed’s stance on interest rates.
The possibility of sticky inflation could reinforce expectations that the Fed will maintain higher interest rates for a longer period, which could bolster the US Dollar and lead to selling pressure on gold, a non-yielding asset.
While some support for gold comes from a modest decline in the US Dollar and a cautious sentiment in equity markets, there is a lack of substantial buying interest. Traders are wary of confirming a near-term bottom for gold and are waiting for clearer signals before positioning themselves for any potential recovery from recent lows.
In the lead-up to the US inflation data release, several Federal Reserve officials have reiterated the need for further action to address inflation concerns. New York Fed President John Williams suggested that interest rate cuts could begin in 2024, while Atlanta Fed President Raphael Bostic emphasized the importance of patience in adjusting policy. Boston Fed Bank President Susan Collins hinted at potential rate cuts this year but stressed the importance of assessing data before making any decisions.
The recent second estimate of US GDP growth for the fourth quarter showed a slightly lower expansion rate, but it still reinforced the view of a strong economy. However, this data alone may not provide significant momentum for the US Dollar.
From a technical standpoint, gold price traders appear hesitant, with resistance seen around the $2,041-2,042 level. A sustained breakthrough could signal bullish momentum, while support is expected around the $2,025-2,024 area. If this support is breached, the focus could shift to the $2,000 psychological level, potentially leading to further downside pressure.
US Dollar price today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Euro.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.03% | -0.06% | -0.04% | -0.36% | -0.54% | -0.17% | -0.05% | |
| EUR | -0.04% | -0.09% | -0.07% | -0.38% | -0.57% | -0.20% | -0.08% | |
| GBP | 0.06% | 0.09% | 0.01% | -0.29% | -0.48% | -0.11% | 0.01% | |
| CAD | 0.04% | 0.09% | -0.02% | -0.31% | -0.51% | -0.12% | 0.00% | |
| AUD | 0.34% | 0.36% | 0.28% | 0.31% | -0.19% | 0.19% | 0.30% | |
| JPY | 0.54% | 0.56% | 0.47% | 0.48% | 0.19% | 0.39% | 0.50% | |
| NZD | 0.16% | 0.20% | 0.11% | 0.13% | -0.20% | -0.38% | 0.14% | |
| CHF | 0.05% | 0.08% | -0.01% | 0.00% | -0.31% | -0.50% | -0.11% |
ECONOMIC INDICATOR
United States Core Personal Consumption Expenditures – Price Index (MoM)
The Core Personal Consumption Expenditures (PCE), released by the US Bureau of Economic Analysis on a monthly basis, measures the changes in the prices of goods and services purchased by consumers in the United States (US). The PCE Price Index is also the Federal Reserve’s (Fed) preferred gauge of inflation. The MoM figure compares the prices of goods in the reference month to the previous month.The core reading excludes the so-called more volatile food and energy components to give a more accurate measurement of price pressures. Generally, a high reading is bullish for the US Dollar (USD), while a low reading is bearish.