The price of precious metal is declining sharply after the release of higher-than-expected US inflation report, raising investors’ expectations of a longer delay in the Federal Reserve’s interest rate cut.
On the evening of February 13 (Vietnam Time), the world gold price plummeted from $2,028/ounce to $1,990/ounce in just a few minutes, equivalent to a decrease of nearly $40/ounce.
The price of precious metal is declining sharply after the release of higher-than-expected US inflation report, raising investors’ expectations of a longer delay in the Federal Reserve’s interest rate cut.
Specifically, the US Consumer Price Index (CPI) in January increased by 0.3% compared to December 2023, according to the latest data released by the US Department of Labor on Tuesday. This figure is slightly higher than the 0.2% increase in December. Meanwhile, the annual inflation rate fell to 3.1% from 3.4% the previous month. Both indices exceeded the predictions of economists surveyed by Dow Jones and Wall Street. They expected a monthly increase of 0.2% and an annual increase of 2.9%.
The CPI report also boosted US treasury bond yields and the strength of the USD. The DXY index, which measures the strength of the US dollar against major currencies, rose to 104.8 points, the highest in 3 months.
Many analysts believe that gold will continue to face difficulties until the Federal Reserve signals a clear plan to cut interest rates and loosen monetary policy.
Specifically, the US Consumer Price Index (CPI) in January increased by 0.3% compared to December 2023, according to the latest data released by the US Department of Labor on Tuesday. This figure is slightly higher than the 0.2% increase in December. Meanwhile, the annual inflation rate fell to 3.1% from 3.4% the previous month. Both indices exceeded the predictions of economists surveyed by Dow Jones and Wall Street. They expected a monthly increase of 0.2% and an annual increase of 2.9%.
The CPI report also boosted US treasury bond yields and the strength of the USD. The DXY index, which measures the strength of the US dollar against major currencies, rose to 104.8 points, the highest in 3 months.
Many analysts believe that gold will continue to face difficulties until the Federal Reserve signals a clear plan to cut interest rates and loosen monetary policy.
