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Gold backs off record highs before US inflation data

Economies.com
2025-02-12 09:50AM UTC

Gold prices fell in European trade on Wednesday away from recent record highs on profit-taking following bullish remarks from Fed Chair Jerome Powell at his Congressional testimony. 

 

The remarks tanked the odds of a Fed rate cut in March, with investors now waiting for US inflation data later today to gather more clues.

 

Prices

 

Gold prices fell 0.5% today to $2883 an ounce, with a session-high at $2900.

 

On Tuesday, gold lost 0.35%, the first loss in three days away from a record high at $2942.

 

Powell

 

Federal Reserve Chair Jerome Powell said during his biannual Congressional testimony ahead of the Senate that US inflation remains above the 2% target, but he praised the recovery of the US economy, and noted the durable strength of the labor sector. 

 

He asserted the Fed’s continuous mission to combat inflation, adding that Fed officials are not in a hurry to cut interest rates.

 

He noted that monetary policies are less restrictive now than before, and the economy remains strong, so the need to accelerate rate cuts isn’t there. 

 

Following his remarks, the odds of a Fed March 0.25% interest rate cut fell even further to just 4.5%.

 

US consumer prices are expected up 2.9% y/y in January, while core prices are estimated up 3.1%.

 

SPDR

 

Gold holdings at the SPDR Gold Trust rose 0.86 tons on Friday to a total of 871.94 tons, the highest since January 17.

Yen skids to one-week trough before US inflation data

Economies.com
2025-02-12 05:45AM UTC

The Japanese yen fell in Asian trade on Wednesday against a basket of major rivals, extending losses for the third straight session and hitting a week trough after cautious remarks from Bank of Japan Governor Kazuo Ueda reduced the odds of a March interest rate hike. 

 

The yen is also hurt by a rally in US 10-year treasury yields following the testimony of Fed Chair Jerome Powell ahead of Congress.

 

The Price

 

The USD/JPY pair rose 0.85% today to 153.74, a week high, with a session-low at 152.34.

 

The yen closed down 0.3% against the dollar on Tuesday, on profit-taking away from a two-month high at 150.93. 

 

Ueda

 

Bank of Japan Governor Kazuo Ueda said that the rate of policy normalization will depend on economic conditions and price movements.

 

Ueda said the bank will take into consideration the risks of higher food prices and their impact on the inflation outlook.

 

He also asserted the bank is monitoring US President Trump’s new economic and trade policies closely to gauge the potential impact.

 

Japanese Rates

 

Following the remarks, the odds of a Bank of Japan interest rate hike in March dipped slightly from 75% to 70%, with traders now awaiting a batch of data on Japanese inflation, unemployment, and wages later this month.

 

US Yields

 

US 10-year treasury yields rose 0.9% on Wednesday, on track for the fifth profit in a row, hitting a week high at 4.554% and underpinning the greenback.

 

It comes following the first part of Fed Chair Jerome Powell’s Congressional testimony yesterday, at which he asserted the Fed won’t rush rate cuts.

 

Following his remarks, the odds of a Fed March 0.25% interest rate cut fell even further to just 4.5%.

 

A larger gap between long-term US and Japanese government bond yields would hurt the yen’s standing against the greenback.

Gold tapers off record highs

Economies.com
2025-02-11 20:20PM UTC

Gold prices fell on Tuesday away from record highs even as the dollar dipped against most major rivals. 

 

Investors also await important US inflation data later this week for January to gather clues on the path ahead for Fed’s monetary policies.

 

Federal Reserve Chair Jerome Powell said during his biannual Congressional testimony ahead of the Senate that US inflation remains above the 2% target, but he praised the recovery of the US economy, and noted the durable strength of the labor sector. 

 

He asserted the Fed’s continuous mission to combat inflation, adding that Fed officials are not in a hurry to cut interest rates.

 

He noted that monetary policies are less restrictive now than before, and the economy remains strong, so the need to accelerate rate cuts isn’t there. 

 

Otherwise, the dollar index fell 0.3% today as of 20:06 GMT to 107.9, with a session-high at 108.4, and a low at 107.7.

 

On trading, gold spot prices fell 0.2% today to $2928 an ounce away from a record high at $2968.

Fed Chair: We're not in a hurry to cut rates

Economies.com
2025-02-11 16:58PM UTC

Federal Reserve Chair Jerome Powell said during his biannual Congressional testimony ahead of the Senate that US inflation remains above the 2% target, but he praised the recovery of the US economy, and noted the durable strength of the labor sector. 

 

He asserted the Fed’s continuous mission to combat inflation, adding that Fed officials are not in a hurry to cut interest rates.

 

He noted that monetary policies are less restrictive now than before, and the economy remains strong, so the need to accelerate rate cuts isn’t there. 

 

Powell warned that hurrying rate cuts would hurt efforts to control inflation, however maintaining rates at high levels for more than needed would damage economic activities and the labor market. 

Frequently asked questions

What is the price of Gold today?

The price of Gold is $3337.460 (2025-07-04 23:55PM UTC)