Prices of the yellow metal traded between $1,920 and $1,934.90 per troy ounce ahead of Friday’s release of PCE-based inflation data from the U.S. Despite the recent surge in prices, trading remained cautious on Friday.
Sentiment was muted as markets weighed the prospect of PCE-based inflation confirming the general decline in inflation that the CPI readings had demonstrated. Even though CPI has steadily declined from the peaks, markets remained cautious, awaiting a corroborative decline in PCE inflation as well. PCE-based readings that are sourced from businesses, unlike the CPI which sources data only from consumers has been the Fed’s preferred inflation gauge.
Though markets have been betting on a dovish pivot by the Fed and a slowing down in the rate hikes, the Fed has been cautious to not give the message that the fight against inflation is already over.
Gold Futures for February Settlement edged 0.06 percent higher to trade at $1,931.20.
Spot Gold also gained 0.09 percent to trade at $1,930.88 per troy ounce. The day’s trading range has been between $1,919.92 and $1,934.88.