Gold prices meandered on Wednesday after dropping more than 1% on rising Treasury yields. Data showed the CPI rose increased 3.2%, above the 3.1% forecast, suggesting some stickiness in inflation.
But market expectations for the timing of the Fed's first rate cut remained largely unchanged, pricing in a 69.8% chance of a cut of at least 25 basis points in June, according to CME's FedWatch Tool.
The safe-haven asset has risen for two consecutive months amid ongoing wars in Ukraine and Gaza, the upcoming presidential election, and uncertainty around interest rates path globally.
Some Wall Street experts forecast the current rally to continue, anticipating the value to rise to $2,300 or higher over the next 12 to 16 months. The metal only grew 1% a year on average in the last century.
The CFTC data showed that money managers boosted their long gold positions in the week through 5 March and the net long positions jumped 35% from a week earlier.
In January, central banks reported that they increased global official gold reserves by 39t. This was more than double the December net purchases of 17t, and the eighth consecutive month of net purchases.
Bullion found support around $2,150 with 50 SMA underpinning its current bullish trend. But there could be more profit-taking until RSI is back to the normal range.
EBC Financial News Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Financial News or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
風險提示：本文所述僅代表作者個人觀點，不代表 Followme 的官方立場。Followme 不對內容的準確性、完整性或可靠性作出任何保證，對於基於該內容所採取的任何行為，不承擔任何責任，除非另有書面明確說明。
暫無評論，立馬搶沙發