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Daily Market Analysis and Forex News
Gold edges towards $2330 following the lower-than-expected US PPI
![Gold edges towards $2330 following the lower-than-expected US PPI](/s3-static/2024-06/gold_51_1.jpg)
Gold is rebounding after a ~1% drop on Thursday, June 13, following the lower-than-expected US PPI reading.
Producer inflation fell 0.2% vs 0.1% expected, fueling hopes that a rate cut may finally be on the horizon.
Rate cuts can lower the opportunity cost of holding non-yielding gold.
Currently, the markets are pricing in a 76.4% probability of a rate cut in September (69.5% probability - 1 day earlier).
A higher-than-expected initial jobless claims reading (242K vs. 225K expected) has also added to gold's momentum.
Geopolitical turbulence in the Middle East and political uncertainty in European politics continue to provide support for the bullion.
On the demand side, despite trading at elevated levels, consumers in Asia are showing a strong appetite for gold.
Today, the markets will pay close attention to the Michigan Consumer Sentiment reading and the Fed's Goolsbee speech.
A higher-than-expected reading could send the USD higher and put pressure on US indices and gold.
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