Gold trend today, main selling trendWorld gold prices stabilized, with spot gold down 1 USD to 2,023 USD/ounce. Gold futures last traded at 2,035 USD/ounce, down 0.9 USD compared to yesterday morning.
Despite being pressured by the minutes of the first policy meeting of the US Federal Reserve (Fed), gold continues to consolidate above 2,000 USD/ounce. In the newly released minutes, the Fed signaled that its monetary policy had peaked, but was not in a hurry to reduce interest rates.
Fed officials noted that inflationary pressures eased and economic activity remained strong. According to the minutes, the committee wants more evidence to show that inflation continues to fall to the target level of 2% before making a decision to loosen monetary policy.
Kitco.com senior market analyst Jim Wyckoff said the minutes did not provide any additional information on monetary policy following hotter-than-expected inflation data released last week.
He said that, although a bit hawkish, the minutes contained no surprises. Recent hotter inflation reports have made the market more certain that the Fed will delay lowering interest rates until the second half of the year.
Independent metals analyst Tai Wong in New York predicts that gold will likely continue to move sideways in the short term and the information the market is waiting for will be the personal consumption expenditure (PCE) report released. announcement next week, followed by payrolls and Fed Chairman Jerome Powell's testimony in Congress in early March.
Although the gold market is struggling as expectations for interest rate cuts continue to be pushed back, according to WisdomTree market strategist Nitesh Shah, the longer the central bank delays, the risk of mistakes happening. The bigger the policy, the more this will ultimately benefit precious metals. This expert predicts that gold prices will reach 2,210 USD/ounce in the fourth quarter of this year, a new all-time high.
