Daily Gold Market Report | Today's top gold news and opinion

Market Reacts to CPI Surge:
Gold Retreats Amid Fed Rate Cut Speculation

(USAGOLD – 3/13/2024) Gold and silver prices are back higher on Wednesday. The marketplace has mostly digested Tuesday’s U.S. consumer price index for February it seems. Gold is trading at $2170.38, up $12.04. Silver is trading at $24.48, up 34 cents. Gold prices faced downward pressure following a U.S. inflation report that exceeded expectations, leading to doubts about an imminent Federal Reserve interest rate cut. The Consumer Price Index (CPI) rose by 0.4% in February, with an annual increase of 3.2%, surpassing the forecasted 3.1%. This data caused gold to drop over 1%, with spot gold falling to $2,153.05 per ounce. The market anticipates the next Fed meeting on March 20, with a focus on potential interest rate adjustments.

“If I’m them, I don’t want to cut too quickly. The worst thing they could end up doing is cutting, pausing and then changing direction back toward higher rates quickly. That would, in my opinion, be the most devastating course of action they could pursue.”

— Ken Griffin, founder and CEO, Citadel