Gold prices trimmed earlier gains as inflation data reinforced expectations that the Federal Reserve will maintain a cautious approach to monetary easing. After climbing in early trading, gold futures settled at $1,980 an ounce, reflecting a tepid response to consumer price index data that showed a slight moderation in inflation but still above the Fed’s target.
Investors remain wary of Fed policy signals, with Chair Jerome Powell reiterating the need for vigilance in balancing growth and inflation. While easing pressures could support a softer stance, analysts suggest persistent uncertainties will keep gold’s safe-haven appeal steady. The yellow metal’s outlook now hinges on upcoming labor market data and its potential influence on rate adjustments heading into 2024.
