Investors are increasingly focused on coming American macro -economic releases, including Friday’s PCE Price Index, which can offer a clearer view of the monetary policy position of the FED.
Anticipation on American rates that start on 2 April on the import of 15 trading partners has further fueled the demand for gold as a cover against trade -related uncertainty.
“Gold remains supported by soft American data and a weaker dollar”, a strategist of the raw materials noted in an investment bank based in New York. “With the FED under pressure to act, tariff reduction betting are increasingly priced in the market.”
Weaker American data strengthens the Dovish Bias
Recent data signals mitigate economic conditions. The consumer confidence index of the Conference Board fell to 92.9 in March, the lowest since 2020, while expectations -index fell to 65.2, a level that is historically associated with recession overview.
The US dollar has since been withdrawn from a recent high and helps non-building assets such as Gold Gain Traction.
Although the current prediction of the FED includes two 25-basic point reductions in 2024, market prices suggest an aggressive path, with expectations for cutbacks that already start in June.