Gold Moves Before Inflation Data Release

Gold prices rose during these trading moments, Tuesday, ahead of the release of the US inflation report, which could provide a new perspective on the timing of the first rate cut by the Federal Reserve.

All eyes are on the January inflation data for the US Consumer Price Index, due out at 13:30 GMT. A survey by the New York Federal Reserve showed that Americans reported relatively stable inflation expectations at the start of the year.

Economists expect the CPI to reach 2.9% on an annual basis in January, down from 3.4% in December, and believe that the core CPI also slowed to 3.7%, from 3.9% in the previous month.

Gold and the Dollar Now

Gold futures are now up 0.3% to $2039 an ounce.

Spot gold is up 0.25% to $2025 an ounce.

On the other hand, the dollar index is stable at 104.057 points.

Other Metals

Platinum is flat in spot trading at $888.89 an ounce.

Palladium is up 1.5% to $905.71.

Silver is up 0.1% to $22.71.

What You Need to Know Before the US Inflation Report Comes Out

Investors today, Tuesday, are looking forward to important economic data that the Federal Reserve will take into account in its upcoming decision on interest rates: the Consumer Price Index for January.

The inflation report is expected to show headline inflation of 2.9%, a significant slowdown from the 3.4% annual gain in December, according to estimates.

If these estimates are correct, this would be the lowest annual inflation rate in about three years and the first time the figure has fallen below 3% since March 2021.

However, the annual inflation rate will still be above the Fed’s target of 2%. But the Fed’s preferred inflation measure, the core personal consumption expenditures price index, has come in below that rate on an annual basis for six months, boosting hopes that the central bank may start cutting rates.

But Federal Reserve Chairman Jerome Powell downplayed those expectations. He closed the possibility of a rate cut in March at the central bank’s meeting last month.

The market largely expects the central bank to start cutting rates at its May meeting, with a roughly 60% chance of a cut.

Bank of America does not expect the first Fed rate cut until June.

“A report in line with our expectations will continue to build Fed confidence and support our expectation that the first cut will be in June,” Bank of America economists said.

Bitcoin Surges to $50,000 for the First Time in Two Years!

Bitcoin has risen above $50,000 in the last half hour, breaking through a high not seen since December 2021 and approaching the $50,000 level.

Bitcoin is now trading at $50,050, continuing the cryptocurrency’s seven-day rally, and today has seen the second-biggest seven-day gain so far, after Friday’s rise above $47,000.

The upward momentum of the strongest cryptocurrency in the digital currency market continues with increasing inflows into spot Bitcoin funds, as ETF data revealed that more than $1.1 billion was attracted to spot Bitcoin funds after the outflow from GBTC and BITO funds stopped.

For further insights, check OneRoyal’s Facebook, Instagram, and Twitter pages and expand your understanding of financial markets with global perspectives.  Staying informed is crucial in the ever-evolving world of finance.

Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances, or needs.

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