December 23, 2024 05:27 GMT
GOLD: Gold Up on Poor US Data Friday.
GOLD
- Gold was left floundering into the end of last week, only to receive a small kicker from weaker than expected PCE data in the US.
- Gold had been hovering around US$2600 in early trading Friday only to jump to $2622.91 at the close and it has hovered around that level all day in Asia.
- With lower rates typically good for gold, the muted Personal Consumption Expenditure revives the debate on how many rate cuts in the US in 2015.
- Having had a very good year in 2024 on a view of rate cuts, gold appears evenly poised in the coming months, pending the outlook for rates.
- The FED had indicated that the possibility exists for less rate cuts that is currently priced in and this has the potential to be challenging for gold.
- Tonight sees Building Permits, Chicago Fed National Activity Index Durable Good and New Home Sale releases for further guidance on rates.
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