The price of gold continued to climb during the opening trading session early this morning. It was due to the movement of the value of the US dollar currency that weakened and the low US GDP growth figure pushed the price of gold to trade at $2,055, up 0.53%.
Meanwhile, the US Dollar Index (DXY) fell to its lowest level since August against its peers to around 101.80. While the US Treasury yield increased modestly with the 10-year yield at 3.89%.
Yesterday, data released showed US Gross Domestic Product (GDP) for the third quarter slightly lower than market expectations to 4.9%, according to a US Bureau of Economic Analysis (BEA) report.
In addition, the unemployment rate in the US increased by 2,000 to 205,000 for the last week. However, it is still positive because it is far from the market's expectation of 215,000.
The weak US economic data and the moderate inflation rate show that the monetary policy by the Federal Reserve (Fed) is still able to bring the inflation figure back to the set target.
Through recent statements, Fed officials predicted at least three rate cuts in 2024 and the market price which is currently around 79% likely to be lowered in March next year. Indirectly, this will continue to give impetus to the price of gold to continue to rise.
For now, gold traders will focus their attention on the US Core Consumer Price Index (Core PCE) today (Friday). The Fed's preferred inflation gauge is expected to increase by 0.2% monthly and 3.3% annually.
In addition, investors are also looking forward to the University of Michigan Consumer Confidence Survey, the Durable Goods Orders report and the New Home Sales data which will follow today at 9.30 and 11pm Malaysian time.
