On Monday, the price of gold was low, at around $2,030 an ounce. It had trouble going up from where it was last week. This happened because investors were waiting for important information about US inflation. This information could change what people expect from the Federal Reserve’s future actions.
This week, we are expecting the monthly personal consumption expenditures price index. The Federal Reserve prefers to use this index to measure inflation. It will come out on Thursday.
Besides, investors are also waiting for more information. They want to know about personal income and how much people are spending. They are also looking forward to hearing from several Federal Reserve officials who will speak this week.
Last week, Christopher Waller, a Governor at the Federal Reserve, made a statement. He said the bank should wait at least a few more months before cutting interest rates. He wants to see if the high inflation report from January was just a one-time thing. He also mentioned that the Federal Reserve is still working towards its inflation goal.
In other parts of the world, markets are also paying attention. They are looking out for inflation numbers from the Eurozone, Japan, and Australia. They are also interested in the PMI readings in China and what the Reserve Bank of New Zealand decides about interest rates.