The core PCE in the U.S. hit a near two-year high in January, while the Q4 real GDP was revised down sharply.
Core inflation in the United States has risen month-over-month for two consecutive months, while economic growth in the fourth quarter was drastically revised downward. Amid a dual impact of surging oil prices triggered by Iran-related tensions and weak consumer spending, the Federal Reserve's rate-cutting playbook has been completely disrupted.
Why does gold remain 'unshaken' amid the turmoil in the Middle East?
In the recent escalating conflict involving the US, Israel, and Iran, gold, the top safe-haven asset, has shown unusual 'calmness' and even faced a wave of sell-offs at one point. Why has the geopolitical turmoil failed to ignite the price of gold?
Soaring Oil, Broken Gold, Stock Spikes: The Iran War in 5 Market Charts -- Barrons.com
The surge in oil prices and the strengthening of the US dollar have suppressed safe-haven demand, placing the gold market in a phase influenced by multiple intertwined factors.
The international gold market extended its pullback during the Asian session on Thursday, with spot gold prices hovering near $5,150 after two consecutive sessions of declines. Although gold had reached a recent high driven by safe-haven demand, recent shifts in market dynamics have led to a notable retreat in prices. One of the primary factors behind the adjustment in gold prices has been the significant volatility in energy markets. Recently, international crude oil prices have continued to rise, with WTI crude climbing above $92 per barrel and intraday gains surpassing 6% at one point. Rising energy costs often signal the potential for renewed inflationary pressures in the future, thereby altering market expectations regarding monetary policy. When
Express News | After the release of the CPI, spot prices fell slightly by $10 per ounce. Analysts noted that the CPI was in line with expectations, and the market is now focused on the data for March and how long oil prices will remain at high levels.
US CPI data met expectations, with the annual core CPI rate for February dropping to a five-year low. Could inflation heat up further in March?
In February, U.S. inflation appeared to cool steadily, but the pass-through effects of tariffs became evident, with significant price surges observed in home appliances and apparel. Amid rising crude oil prices driven by escalating conflicts in the Middle East, this seemingly 'tranquil' data has been largely overlooked, and next month's inflation figures may face a major test.