Gold prices are showing strength in early U.S. trading on Wednesday, maintaining gains from overnight following the release of a key U.S. inflation report that met market expectations. The gold market continues to be driven by safe-haven demand and technical buying this week. The price of gold is trading at $2701.14, up $7.16. The price of silver is trading at $31.85, down 6 cents.
The most anticipated U.S. economic data this week, the November consumer price index (CPI), was released today. The report showed a year-on-year increase of 2.7%, aligning with market forecasts and slightly higher than October’s 2.6% rise.
Looking ahead to next week’s Federal Reserve FOMC monetary policy meeting, today’s CPI data is unlikely to significantly alter the Fed’s current monetary policy stance. According to the CME’s FedWatch tool, there’s approximately an 85% probability of a 25 basis-point interest rate cut.
Thursday will bring rate decisions from two major European central banks. Both the European Central Bank and the Swiss National Bank are anticipated to announce 25 basis-point rate cuts.
