Gold price range-trades ahead of the first estimate for US Q4 GDP data.
The US Dollar Index consolidates as investors look for fresh guidance on interest rates.
US economic resilience continues to strengthen the appeal for restrictive interest rates – a negative for Gold.
Gold price (XAU/USD) remains inside the woods as investors await the United States Gross Domestic Product (GDP) release for Q4, which will provide fresh information on which to base an outlook for interest rates. Investors are watching as upbeat GDP data could weaken the consensus argument advocating early interest rate-cuts by the Federal Reserve (Fed).
Stronger US PMI data, released by S&P Global, is reflecting resilience in the US economy, allowing Fed policymakers to designate rate-cuts from March as “premature”. The US economy is resilient amid upbeat labor market conditions and robust consumer spending. In addition to that, widely anticipated interest rate-cuts by the Fed this year has set a positive undertone for the economic outlook.
Apart from the Q4 GDP data, market participants will keenly focus on the core Personal Consumption Expenditure price index (PCE) data for December, which will be published on Friday. The underlying core inflation is preferred by Fed policymakers while deciding on the interest rate policy.
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