Gold price up nearly $300 since November lows as inflation cools and Fed's February expectations shift gold Fed economy
Gold breached $1,900 an ounce Thursday as inflation cooled. But whether or not the metal can maintain gains depends on the rate hike expectations for the Federal Reserve's February meeting.
To get gold to $1,900 an ounce, traders needed to see inflation start to meaningfully come down, which is exactly what happened with the December figures. Annual inflation during the last month of the year decelerated to 6.5% following November's pace of 7.1%. The yearly core CPI also slowed to 5.7% from 6%.
Federal Reserve Bank of Philadelphia president Patrick Harker said Thursday the U.S. central bank could accomplish its task with slower rate hikes. However, it might be too early for the Fed to declare victory on inflation just yet, said Wells Fargo's economists Sarah House and Michael Pugliese. "On one hand, declining inflation numbers are significant. But on the other hand … the strength in core services CPI is a niggling problem for the Fed," said MKS PAMP metals strategist Nicky Shiels."The current gold trajectory is pricing in closer to 25bp, so if 50bp expectations grow , the bullish trajectory needs to reprice to a less bullish trajectory and perhaps test recent floors / inflection points .
"The 3-month to the 10-year became inverted not long ago. The 10-year yielded more than 200 basis points than the three-month bill," Gundlach said."We see that we have exactly the setup that goes all the way back to the Volcker days. We haven't seen the 3-10s this inverted since the early 1980s. It was close in 1999-2000. But that was a pretty nasty recession that ensued."
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
I got $300 from the CRA in uncashed cheques and you might get some tooThey say there’s no such thing as money for free. And that might be true, but I have come as close as you can to finding it. The Canada Revenue Age...
Read more »
World Bank slashes global growth forecast and warns of recession, gold price eyes $1,900
Read more »
Gold price hits 6.5-mo. high on bullish charts, China hopesSenior Technical Analyst Jim Wyckoff prepares investors with an overview of how the markets opened and closed. What moved metal prices? How do the technicals look? By looking at important developments
Read more »
Gold price sharply higher following as-expected U.S. CPI printSenior Technical Analyst Jim Wyckoff prepares investors with an overview of how the markets opened and closed. What moved metal prices? How do the technicals look? By looking at important developments
Read more »
Victoria Gold says its FY22 operating results below expectations due to a conveyor belt failureA roundup of all the mining news in the precious metals sector with a variety of company news, mining sector analysis, newsletter writer insights and executive interviews.
Read more »
Dundee says achieved 2022 gold production guidance, while copper output was slightly below forecastA roundup of all the mining news in the precious metals sector with a variety of company news, mining sector analysis, newsletter writer insights and executive interviews.
Read more »