Gold prices: Precious metal rises ahead of economic data release, silver up 0.5%
Gold and silver prices Today on 25-03-2024: Check latest rates in your city The PCE data serves as the Federal Reserve's preferred measure of inflation, and any market response to it will likely be observed in the following week due to the Good Friday holiday. "Higher-than-expected PCE figures may prompt spot gold to pare some of its month-to-date gains," said Han Tan, chief market analyst at Exinity Group, was quoted as saying by Reuters. Tan remarked that the increased gold prices were indicative of the anticipation for imminent Fed rate cuts.
"Furthermore, as Fed Chair Powell himself stated last week, a sudden and unexpected deterioration in the US jobs market may jolt the Fed into a more aggressive policy easing cycle, which in turn would be a boon for gold bugs." Last week, gold prices surged to unprecedented heights following Powell's announcement that the U.S. central bank is still poised to decrease rates by three-quarters of a percentage point before the close of 2024. A plethora of Federal Reserve officials are slated to address the public this week.
According to the CME FedWatch Tool, traders are factoring in a 73% likelihood of a rate cut in June, marking an increase from 60% prior to the Fed's March policy meeting held last week. Also read: Gold price jumps 6% this month. Should you buy as MCX gold rate dips ₹1000 from record high? In the realm of autocatalysts, platinum saw a 1.8% increase to $909.70, while palladium soared by 3.6% to $1,020.45.
Analysts at Heraeus stated in a note that the demand for palladium from the automotive sector will receive sustained support following last week's implementation of new U.S. emissions regulations. These changes are anticipated to facilitate more catalyzed car sales
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