As of 6:00 p.m. EST, the February contract for gold futures is down for the second time in the past seven trading days. Gold futures are currently fixed at $1927.60, down $2.40, or 0.12%. Gold traded at a high of $1935.40 and a low of $1916.50.
The key takeaway from today’s PCE Inflation Index report was that the core PCA index fell 0.3% in December. The preferred inflation index used by the Federal Reserve was 4.7% yoy in November and fell to 4.4% yoy last month.
Both reports will influence Fed decisions at next week’s FOMC meeting.
They will be used as critical components by the Federal Reserve next week and will most likely bolster tightening Fed officials’ conviction to maintain their ultra-aggressive monetary policy. Currently, the Federal Reserve’s forward guidance consists of further rate hikes and keeping rates elevated for an extended period.
The most likely outcome is that the Fed will hike rates by ¼% at the next two meetings. The Federal Reserve has said it is continuing to work towards its 2% inflation target. A large majority of market participants continue to believe that the Fed will back down on its promise to keep interest rates high into 2023.
I will be speaking at VRIC 2023 (Sunday, January 29-30) at the Vancouver Convention Center. Both Kitco News and I would like to welcome you if you are available.
If you want more information, just use this link.
I wish you good business as always,
Disclaimer: The views expressed in this article are those of the author and may not reflect those of the author Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no responsibility for any loss and/or damage resulting from the use of this publication.