Gold Prices Today: Yellow metal extends gains as investors await US inflation data, silver up 0.6%
Gold Prices Today: Gold prices extended gains on Wednesday, March 27, as investors awaited US inflation data that will throw further light on the US Federal Reserve's policy path after the central bank kept interest rates unchanged for the fifth straight meeting this month. According to commodity market experts, gold prices have retraced from recent highs due to the profit-booking. The yellow metal still possesses steam and may soon touch record-high levels soon as the US Fed rate cuts are expected to inject further momentum in prices.
Rate cut means easy money, which means more inflation, and gold is seen as a hedge against inflation. At 9:53 am EDT (1353 GMT), spot gold was up 0.6 per cent at $2,191.88 per ounce, while US gold futures rose 0.6 per cent to $2,190.50. The US Core Personal Consumption Expenditures Price Index (PCE) data for February is due on Friday.
The PCE rose 0.3 per cent in January. Also Read: US Fed keeps benchmark rates steady at 23-year high-mark, projects 3 rate cuts in 2024: 5 key highlights Alex Turro, senior market strategist at RJO Futures told news agency Reuters that he expects range-bound price action for the session as investors come into the sidelines ahead of the report. "We'll have to see whether or not U.S.
inflation here domestically is soft enough to provide this clear path to lower rates in the coming months,'' said Turro. Gold prices hit a record high last week after the US central bank's policymakers indicated they still expect to reduce interest rates by three-quarters of a percentage point by end-2024, despite recent high inflation. The Fed's rate-setting panel unanimously voted to leave the benchmark interest rates unchanged at 5.25 per cent - 5.50 per cent, in line with
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