Daily digest market movers: Gold remains pressured by a firm US Dollar

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  • Gold prices fell as US real yields, which inversely correlate against Bullion, edged up one basis point to 2.089%.
  • The US CPI rose as anticipated to 2.6% YoY, up from 2.4%, with a 0.2% monthly increase as expected.
  • Core CPI also aligned with forecasts, rising 3.3% annually and 0.3% on a monthly basis, matching private analyst projections.
  • Minneapolis Fed President Neel Kashkari stated that the US central bank would need to lower borrowing costs, adding that inflation heads “in the right direction.”
  • Echoing some of his comments was the Dallas Fed’s Lorie Logan, stating the US central bank “most likely” needs to reduce its restrictive policy, though it must proceed cautiously.
  • St. Louis Fed’s Alberto Musalem said that although inflation data was stronger, it doesn’t change his view that policy is on path to neutral.
  • Kansas City Fed Jeffrey Schmid was more cautious, saying “it remains to be seen” how much more the Fed will cut rates.
  • According to the Chicago Board of Trade’s December fed funds rate futures, investors now anticipate approximately 23 basis points of Fed easing by the close of 2024.


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