Gold prices now remain flat around the $2,025 level during early Asian trading on Tuesday. The momentum is seen to be stable due to moderate movement of the US dollar and lower US Treasury data.
Meanwhile, the US Dollar Index (DXY) is seen to be more flat at near 102.50 and the 10-year US Treasury yield rose modestly by 3.93%. Meanwhile, the value of the USD remains unchanged compared to the currencies of other US trading partners.
Through the statement of the Federal Reserve (Fed) regarding plans to ease monetary policy following the decline in inflation and the economy in the US, New York Fed President John Williams thinks that it is too early to talk about rate cuts.
San Francisco Fed President Mary Daly said interest rate cuts may be implemented in 2024 to avoid excessive policy tightening. He said further, the suggestion is that more rate cuts may be needed if inflation declines more quickly and more cuts may be needed if the rise stalls.
For now, gold traders will pay more attention to US housing data tonight such as Building Permits and Housing Starts. Additionally, the final reading of US Gross Domestic Product for the third quarter will be released this Thursday which is expected to remain steady at 5.2%.
This week as well, we can see various key events such as the Fed's inflation gauge and the Core Personal Consumption Expenditure (PCE) Price Index with traders taking cues from these data to find gold trading opportunities.
