Gold rises ahead of US Fed announcement, soft inflation data; silver up by 3.2%
Gold and silver prices today on 12-06-2024: Check latest rates in your cityInvestors have flocked to the precious metal, driven by expectations of monetary easing, geopolitical tensions in Europe and the Middle East, and significant central bank purchases, particularly by China.Spot gold is currently trading around $2,300 per ounce after reaching a record high of $2,449.89 on May 20, marking a gain of more than 11 per cent so far this year.“Commodities are broadly stuck in a range and trading flat, as we look ahead to the U.S. CPI numbers and the Federal Reserve’s policy meeting outcome later in the day.
Although the Fed is expected to keep rates unchanged today, but their forward guidance/ commentary on inflation will be closely watched and any surprises would lead to increased volatility in the financial market," said Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services.Traders increased their expectations for Fed policy easing, now pricing in 50 basis points (bps) of cuts, or two quarter-percentage-point reductions, by the end of the year, up from 40 bps before the CPI data. The likelihood of a rate cut at the Fed's September meeting rose to about 70 per cent, compared to around 54 per cent prior to the data.Also read: Gold price dips ahead of US Fed meeting.
Opportunity to buy in this correction?Attention is now focused on the U.S. central bank's policy statement and updated quarterly economic projections, set to be released at 2 p.m.
EDT (1800 GMT). Fed Chair Jerome Powell will hold a press conference at 2:30 p.m.
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