The release of the Producer Price Index indicated a month-over-month increase of 0.1% in July 2024, below the expectations of a 0.2% rise, reinforcing concerns over inflation and monetary policy adjustments.
Anticipation of a potential 50 basis point cut in interest rates by the Federal Reserve in September, followed by further cuts, suggests that the greenback could face pressure and may slide further.
The recent data indicates that if inflation figures from the upcoming Consumer Price Index are softer than anticipated, this could lead to an additional decline in the dollar and lower Treasury yields.
Overall, the combination of declining yields and expectations of monetary easing could position assets like gold favorably, as the market reacts to the shifts in inflation and monetary policy.
Collection
[
|
...
]