Gold price closes 1% higher on December 31, 2023!

Recently Ravindra V. Rao, VP-Head Commodity Research- Kotak Securities said, Comex Gold prices closed almost 1% higher on Wednesday, December 31, 2023 after data showed a slowdown in Labour market and positive developments on inflation front, even as Fed chair Jerome Powell pushed back against imminent rate cuts.

The ADP data showed private businesses in the US hired 107K workers in January 2024, while US employment cost rose the least in two and half years. During the January FOMC meeting, the Fed kept the funds unchanged at a 23 year high of 5.25% – 5.5% for the fourth meeting and chair Jerome Powell said it’s unlikely that the central bank will start cutting interest rates in March even as he expressed confidence that it’s reining in inflation. Investors are now expecting only 34% odds for a March rate cut. Heightened geo-political tensions and US promise for retaliation might provide cushion. Today, markets eye US ISM Manufacturing PMI and weekly jobless claims, Eurozone CPI and BOE policy meeting.

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