Today is a significant day for the Federal Reserve (Fed) and the precious metals market. Analysts from Optimism TDS expect the US central bank to maintain current interest rates. The recent softer-than-expected US Consumer Price Index CPI data might lead Fed Chairman Jerome Powell to adopt a more optimistic tone in his remarks later today. This positive outlook could be beneficial for gold optimism powell.
1. Gold Optimism Powell to See Some Buying Above $2,333
TDS analysts predict that Powell will sound optimistic based on the recent economic data. They foresee the Fed decision indicating only two rate cuts in 2024 instead of the previously anticipated three. This expectation is already factored into the market, as the Fed’s guidance is more conservative than the market’s pricing.
2. Data-Dependent Outlook for Gold
The outlook for gold remains highly dependent on economic data. Gold investors will be watching for any signs of weakening economic trends before re-entering the market. The recent CPI data, which was below expectations, has provided a boost to gold.
3. Future Price Movements
Looking ahead, gold optimism powell could experience some minor buying activity if prices rise above $2,333 per ounce. The metal is also well-protected against significant selling pressure, with the nearest trigger point being around $2,203 per ounce.
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