On Tuesday, the price of gold fell slightly to below $2,020 an ounce. This happened after its price had been increasing for three days in a row. Investors were busy figuring out what might happen next with interest rates and other financial policies around the world.
Last week, new information revealed that in January, the prices for things that consumers and businesses buy in the US went up more than people had thought they would. At the same time, the amount of goods sold in stores went down more quickly than expected.
Because of this, traders now think that the US Federal Reserve will lower interest rates for the first time in June instead of March, as they had previously thought.
Additionally, the financial markets are now expecting less of a decrease in interest rates for the rest of the year. They think there will be less than a 100 basis point cut. This is a big change from the beginning of the year when they expected about 150 basis points of cuts.
Now, investors are waiting for the minutes from the Federal Reserve’s last meeting. They hope these minutes, which will be released on Wednesday, will give them more information about what the Federal Reserve plans to do next.