Gold prices have stagnated as investors await crucial US inflation data expected later this week, which could influence the Federal Reserve’s approach to interest rate adjustments.
The upcoming data includes the US core Personal Consumption Expenditures (PCE) index alongside metrics on consumer spending and income, Q1 GDP growth, and the goods trade balance.
San Francisco Fed Bank President Mary Daly emphasized on Monday that the U.S. central bank should not consider lowering rates until it is clear that inflation is consistently moving towards the 2% target.
More speeches are expected throughout the week from figures such as Fed Governors Lisa Cook and Michelle Bowman, which could offer additional clues on the future monetary policy and impact market sentiment.
Upcoming elections in France and the United Kingdom are stirring investors’ concerns, with polls indicating a possible shift towards the far right in France. Additionally, escalating tensions in the Middle East and the ongoing conflict between Russia and Ukraine could heighten market uncertainty, potentially bolstering gold prices as investors seek stability.
