"Gold remained near record levels on Thursday, with investors remaining cautious ahead of new data releases. In the United States, markets are awaiting the CPI release later today. If inflation remains stable or shows signs of cooling, expectations of additional Federal Reserve rate cuts could strengthen, weighing on yields and the dollar and supporting gold. Conversely, any upside surprise in inflation could reinforce higher yields and lend support to the dollar, potentially capping bullion's advance."
"Beyond the US, several major central banks are set to announce policy decisions today. The Bank of England is expected to deliver a 25-basis-point cut, which would reinforce the relative appeal of non-yielding assets. Conversely, the Bank of Japan is anticipated to raise rates, a move that could partially limit gold's upside. At the same time, geopolitical risks continue to underpin gold. Tensions persist in the Middle East and Eastern Europe, with tensions continuing despite ongoing diplomatic efforts."
Gold traded near record levels as investors awaited the US consumer price index, which will influence expectations for further Federal Reserve rate cuts. Stable or cooling inflation could strengthen expectations of cuts, reduce yields and the dollar, and support bullion; an upside inflation surprise could bolster yields and the dollar and cap gold's gains. Several major central banks are due to announce policy moves, with the Bank of England expected to cut 25 basis points and the Bank of Japan expected to raise rates. Ongoing geopolitical tensions across the Middle East, Eastern Europe, Latin America and East Asia continue to underpin demand for safe-haven assets.
Read at London Business News | Londonlovesbusiness.com
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