Gold Prices Teeter Amid Fed Uncertainty and China`s Deflation Concerns

Published on Nov 09, 2023 13:51

Gold prices remain near their lowest level since October 18, influenced by mixed signals from Federal Reserve officials regarding future rate hikes, reduced concerns about the Israel-Hamas conflict, and expectations of the US central bank nearing the end of its tightening campaign. Meanwhile, gold�s glitter was also lowered by deflationary pressure in china. In October, China`s Consumer Price Index (CPI) contracted by 0.1%, and the Producer Price Index (PPI) declined by 2.6%, extending its 13-month downward trend. Federal Reserve Governor Michelle Bowman`s comments about potential rate hikes reflect confidence in the US economy, while Minneapolis Fed President Neel Kashkari`s caution hints at lingering inflation concerns. Traders are awaiting the release of US Weekly Initial Jobless Claims data and Fed Chair Jerome Powell`s speech for further market direction. MCX December futures continued to trade below the Rs 60000 threshold and should find support near Rs 59700 levels.