Gold Muted Ahead Of Cpi

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Gold Muted Ahead Of Cpi

Gold (Xau/Usd) Remains Muted Ahead Of Cpi

Gold (XAU/USD) prices remain muted on Thursday as the stronger Dollar continues to mount pressure. Now, the focus has shifted to the upcoming CPI which will have a long-lasting effect on the internet rates.

Meanwhile, copper prices are trending higher, and some of its recent losses have already recovered. This is because China has announced its plans to go ahead with more fiscal stimulus measures.

Fed Expected To Deliver A Small Rate Cut

Overall, the metal prices are under pressure after the resurgence of the stronger US Dollar. Now, traders are forecasting a slow pace of rate cuts by the US central bank. This notion was not received well by the Gold prices which have moved lower from the record highs.

For now, Spot Gold (XAU/USD) is trading at $2163.15 with a +0.2% change in the intraday timeframe. Meanwhile, the Gold futures (December) are trading at $2630 with a +0.20% gain.

According to experts, the upcoming CPI is expected to show a weaker reading. Meanwhile, the core CPI will remain unchanged or even move higher in September.

Sticky inflation and a strong labor market mean there's less reason for the Fed to cut the interest rates. Meanwhile, last week's NFP report has once again sparked the notion that the labor market is not as weak as initially expected.

That's why the odds of a 50 bps or a higher rate cut are now completely out of the equation. The recently released Fed meeting minutes for September actually show that the upcoming rate cut will be 50 bps.

In general, small rate cuts by the central bank will be gold for Copper, Gold, and other non-yielding assets. Right now, most of the precious metal seems to be advancing higher but is still at a loss.

For example, Platinum futures are trading at $969.75 with a +1.00% change for the day. Similarly, the Silver futures are trading at $30.742 with a +0.2% gain.

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