Gold dipped below $2,670 per ounce on Friday, reversing earlier gains and deepening the previous day’s decline amid ongoing uncertainty about the scale of Federal Reserve rate reductions anticipated next year.Precious metal prices declined as US producer prices for November rose significantly faster than expected, reinforcing persistent worries about inflation and challenging the absence of significant surprises in this week’s CPI report.However, the dovish sentiment from major central banks lent enough support to gold prices to keep them on track for a modest weekly gain.
Market expectations still largely indicate a 25-basis-point rate cut at the Fed’s December meeting.
This week saw the Swiss National Bank surprising markets with a sharper-than-expected 50-basis-point cut, along with a similar reduction by the Bank of Canada and a 25-basis-point cut by the European Central Bank.Meanwhile, Bank of Japan may defer further rate hike, prompting markets to adjust their positions.More By This Author:EURUSD Trades Near $1.04 Amid ECB Rate Cuts EURUSD: All Eyes On US CPI And EU Rate Decision 2024 World Elections: Lessons For New Traders
