On Tuesday, the price of gold climbed toward $2,030 per ounce. This increase helped gold recover from its losses in the previous session. The reason for this rise was the US dollar becoming weaker from its recent strong levels. At the same time, investors around the world kept analyzing the future of monetary policies.
In Asia, Japan’s central bank, the Bank of Japan, decided to keep its very supportive monetary policies. This decision was what most people expected. Additionally, the bank reduced its forecast for inflation in 2024. They did this because they expect oil prices to be lower.
This week, the European Central Bank (ECB) will make a decision about its monetary policy. Many people think the ECB will argue against the expectation that they will lower interest rates.
Over in the United States, investors are waiting for new information. They want to see data about private sector activities, the country’s Gross Domestic Product (GDP), and the Personal Consumption Expenditures (PCE) inflation. These figures will come out this week. This information is important because it comes before the Federal Reserve’s policy meeting next week.
Market analysts now believe there is less than a 50% chance that the Federal Reserve will lower interest rates in March. This is a big change. Just a week ago, they thought there was an 81% chance of a rate cut. This information comes from the CME’s FedWatch Tool, which tracks these predictions.