Investors eye gold ahead of CPI data as precious metal hits record high
The price of gold hit a new record on Friday as it hovered close to the $2,200 level. This week, investors will be keeping across a few possible price drivers, including US CPI inflation data for February, due on Tuesday.
A cooler reading could help the case for an early rate cut. Additionally, geopolitical tensions in Ukraine and the Middle East have also been boosting safe-haven demand. Moreover, Indian wedding season is underway which usually also supports the price of gold. However, domestic prices have prompted dealers to slash their own prices, as IGTV’s Angela Barnes explains.
(AI Video Summary)
The price of gold
This week, people are paying close attention to the gold market because the price of gold reached a new all-time high of about $2,194. There are several factors that could affect the price of gold. One important factor is the release of the Consumer Price Index (CPI) inflation data for February, which will be out on Tuesday. If the data shows lower inflation, it could support the argument for an interest rate cut.
The Federal Reserve
Another thing that could impact the price of gold is the possibility of the Federal Reserve cutting interest rates earlier than previously expected this year. This rumor has given some support to gold. On top of that, the weakening US dollar has also been putting pressure on the gold market.
Tensions in Ukraine and the Middle East
Furthermore, tensions in Ukraine and the Middle East have been increasing the demand for gold as a safe haven. Additionally, gold is a big part of the Indian wedding season that is happening right now. However, the high prices of gold in India have led to a decrease in demand from consumers. As a result, gold dealers are offering discounts to try to encourage people to buy.
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