Gold prices have remained steady recently. On Wednesday, they settled at around $2,025 per ounce. During this week, the prices have not changed much. They have stayed within a narrow range. Investors are currently focusing on important US economic data. They are waiting for updates on the PMI, GDP, and PCE inflation figures.
Despite the steady prices, the gold market is under pressure. This pressure comes from the strong performance of the US economy. The Federal Reserve officials are also contributing to this pressure. They are showing a tough stance. This tough stance is making a rate cut in March look unlikely.
The chances of a Federal Reserve rate cut in March have decreased recently. Just a week ago, the markets thought there was a near two-thirds chance of a cut. But now, they believe the chance is less than 50%. This information comes from the CME’s FedWatch Tool.
In other news, the Bank of Japan has continued with its very relaxed monetary policies. This decision was made on Tuesday. However, Governor Kazuo Ueda has made some comments about inflation. His comments suggest that he might take a tougher approach soon.
The European Central Bank is also making a decision on Thursday. They are likely to keep interest rates steady. They might also show some doubt about the chances of early rate cuts.