Cooling U.S. CPI could push gold prices above $1,900, but now is not the time to chase the market - analysts

Welcome to Kitco News' 2023 Outlook Series. Uncertainty continues to dominate financial markets as central bank monetary policies push the global economy into a recession to cool down inflation. Stay tuned to Kitco News to learn from the experts on how to navigate turbulent financial markets in 2023.

Thursday, U.S. Labor Department will release its much-anticipated Consumer Price Index and economists expect that prices significantly cooled in December. Annual inflation is forecasted to rise 6.5%, down from 7.1% reported in November. "Gold's price action during the past week has, in my opinion, showed us the correct direction for 2023, but while the direction is correct, I believe the timing could be wrong," he said. "While momentum supports technical and speculative buying - for now primarily through short covering - activity in ETF market from longer-term investors remain tepid, raising the short-term risk of a correction.

Fritsch added that if the market starts to believe the U.S. central bank's monetary policy forecasts, gold could see some renewed selling pressure.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

U.S. stocks bounce back with brewing optimism over CPI - BNN BloombergStocks rose on bets the upcoming consumer price index will show further softening, which could help build the case for the Federal Reserve to slow its pace of rate hikes — even as some officials say it’s too early to declare victory over inflation.
Source: BNNBloomberg - 🏆 83. / 50 Read more »