By NewsBlogger Gold price corrected lower to near $2,160 per troy ounce during Asian trading hours on Friday, influenced by market expectations of a potential interest rate cut cycle by the Federal Reserve starting in June.
At a glance
- Gold price corrected lower to near $2,160 per troy ounce during Asian trading hours on Friday.
- Fed Chair Jerome Powell’s recent comments hint at potential rate cuts, contingent upon inflation aligning with the Fed’s 2% target.
- CME FedWatch Tool shows higher likelihoods of rate cuts in May and June.
- US Initial Jobless Claims held steady at 217K, slightly above expectations.
- ANZ Bank economists believe timing and pace of easing cycle will impact Gold price.
The details
Gold price corrected lower to near $2,160 per troy ounce during Asian trading hours on Friday.
This correction comes as market expectations of the Federal Reserve potentially initiating an interest rate cut cycle starting in June have buoyed gold prices.
Fed Chair Jerome Powell’s recent comments
Jerome Powell’s recent comments during testimony before the US Congress reinforced speculation surrounding potential rate cuts, hinting at potential cuts in borrowing costs this year, contingent upon inflation aligning with the Fed’s 2% target.
The CME FedWatch Tool shows a 5.0% probability of a 25 basis points rate cut in March, with higher likelihoods in May and June.
Additionally, Cleveland Fed President Loretta Mester expressed concerns about inflation persistence and potential rate cuts later in the year.
Economic Indicators
In terms of economic indicators, US Initial Jobless Claims held steady at 217K for the week ending on March 1, slightly above expectations.
On the other hand, US Nonfarm Productivity maintained growth at 3.2% in the fourth quarter of 2023, surpassing market expectations.
Looking ahead, traders are awaiting Friday’s employment data, including Average Hourly Earnings and Nonfarm Payrolls, for further insights into the US economic situation.
Economists at ANZ Bank believe that the timing and pace of the easing cycle will be crucial for the Gold price.
The Gold price is expected to be impacted by decisions made during this easing cycle, with ANZ Bank economists emphasizing the significance of timing and pace in relation to the Gold price.
In a significant development, Gold (XAU/USD) has reached a new all-time high above $2,160. Economists at ANZ Bank are currently analyzing the reasons behind this increase, highlighting the potential influence of the easing cycle on the Gold price.
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| fxstreet.com |
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| – Gold price corrected lower to near $2,160 per troy ounce during Asian trading hours on Friday – Market expectations of the Federal Reserve potentially initiating an interest rate cut cycle starting in June have buoyed gold prices – Fed Chair Jerome Powell’s comments during testimony before the US Congress reinforced speculation surrounding potential rate cuts – Powell hinted at potential cuts in borrowing costs this year, contingent upon inflation aligning with the Fed’s 2% target – CME FedWatch Tool shows a 5.0% probability of a 25 basis points rate cut in March, with higher likelihoods in May and June – Cleveland Fed President Loretta Mester expressed concerns about inflation persistence and potential rate cuts later in the year – US Initial Jobless Claims held steady at 217K for the week ending on March 1, slightly above expectations – US Nonfarm Productivity maintained growth at 3.2% in the fourth quarter of 2023, surpassing market expectations – Traders are awaiting Friday’s employment data, including Average Hourly Earnings and Nonfarm Payrolls, for further insights into the US economic situation |
| fxstreet.com |
|---|
| – Economists at ANZ Bank believe that the timing and pace of the easing cycle will be important for the Gold price – The Gold price is expected to be impacted by the easing cycle – ANZ Bank economists emphasize the significance of the easing cycle for Gold – The Gold price is expected to be influenced by the decisions made during the easing cycle – ANZ Bank economists stress the importance of timing and pace in relation to the Gold price |
| fxstreet.com |
|---|
| – Gold (XAU/USD) has reached a new all-time high above $2,160 – Economists at ANZ Bank are analyzing the reasons behind this increase |
