Gold continues to adjust slightly, today's trading trendWorld gold prices stabilized with spot gold down 0.7 USD to 2,029.5 USD/ounce. Gold futures last traded at 2,039 USD/ounce, down 0.5 USD compared to yesterday morning.
World gold continues to test resistance below 2,050 USD/ounce and is having difficulty attracting new upward price momentum even when published data is not as expected.
In particular, the expectations index decreased to 79.8 from 81.5. “An expectation index below 80 typically signals an impending recession,” the report said.
Currently, the market is waiting for the personal consumption expenditure index (PCE) report to be announced tomorrow (February 29). This inflation report is expected to give the market more clues about the timing of the first interest rate cut by the US Federal Reserve (Fed). Some experts predict core PCE (which strips out volatile food and energy costs) will rise more sharply than expected. If so, this will certainly be a "hot" topic that will be discussed at the next monetary policy meeting in March.
Last week, many Fed officials made it clear that the Fed does not intend to cut interest rates too soon and this view may be reinforced if the February 29 PCE report has hotter results than expected.
