Gold ascended to a new one-month high amid positive PCE index projections. Per the new data, US personal consumption expenditure rose by 0.3%.
Additionally, the core PCE index signals an uptick of 0.4%, adding more pressure on the US dollar. This in turn triggered gold to scale to a new one-month high.
Also Read: Gold Fails to Surge Beyond $2,050 as US Consumer Confidence Slips
Gold Climbs to $2,045 in a New-Month High
Per repohttps://goldprice.org/live-gold-price.htmlrts, spot gold is currently $2,045 at press time, up 0.07% in the last 24 hours. Similarly, gold futures are also up by 0.06%, trading at $2,054.
Speaking about other precious metals, the price of silver has also climbed 1%, trading at $22.67 an ounce. Similarly, the price of platinum is also stable at $878.73.
As per Tai Wong, a New York-based independent metal analyst, gold can experience a technical resistance at $2,065.
“Gold bulls just needed an excuse to buy, and they found it,” Wong later noted.
Also Read: Gold Price Forecasted To Hit $2,100 in 2024: Here’s Why
Federal Reserve Rate Cut Anticipation Grows Stronger
The anticipation concerning the Federal Reserve interest rate cuts is growing stronger with each passing day. As per Reuters, Fed officials shared that the rate cuts could arrive by the end of this year.
“The steady stream of Fed speak has noted that there’s no rush in lowering rates and that news is priced into the market.” as stated by David Meger, director of metals trading at High Ridge Futures.
Projections Positive for Gold?
The director of metals trading at High Ridge Futures, David Meger, is anticipating a positive price uptick for gold. He shared how the federal reserve rate cuts will prove beneficial for the yellow metal to gain more prominence.
“If there is a potential change that would allude to the idea of lowering interest rates even a smidgen sooner, it will be positive for gold,” Meger added.
A federal reserve rate cut typically refers to a decrease in interest rates, which tends to weaken the US dollar, thereby boosting the prospects of gold. Similarly, a hike in interest rates often reinstates momentum for the US dollar, weakening Gold’s stance and valuation.