Gold Nears $2020, Eyes on US GDP & Inflation Data

Published on Nov 28, 2023 15:03

Gold prices approached $2020 per ounce in Asian electronic trades, marking a third consecutive week of gains. The surge is attributed to a weakened US dollar and expectations that the Federal Reserve may shift towards interest rate cuts in the coming year. Monday`s data, revealing a 5.6% drop in US new home sales for October, added to the sentiment. Traders are anticipating the Fed to maintain rates in December, with a 50-50 chance of easing in May 2024, as per CME�s FedWatch Tool. Attention now turns to Wednesday`s US third-quarter GDP figures and Thursday`s personal consumption expenditures (PCE) price index, the Fed`s preferred inflation measure. In related news, China`s net gold imports through Hong Kong declined by 23% in October, with net imports at 26.793 metric tons compared to September`s 34.757 tons. Overall gold imports via Hong Kong also fell by 19%, totaling 33.581 tons. Meanwhile, MCX December gold futures traded at Rs 71,510 per 10 grams, down Rs 30.