Gold extended its bullish trend on Wednesday following the release of US inflation data and increased confidence that the Fed will cut interest rates at the upcoming FOMC meeting.
At 9.20 am, gold prices were at $2,716.87, down 0.8% since it opened in early trading on Thursday in the Asian session.
The US Bureau of Labor Statistics (BLS) reported that the US Consumer Price Index (CPI) remained strong in November as the headline and core figures were in line with economists' estimates.
The following data set a high expectation of 92% for a 25 basis point rate cut by the Federal Reserve (Fed) and reducing rates to 4.45% to 4.50% by the end of 2024.
Meanwhile, analysts at Goldman Sachs stated that China's central bank (PBOC) will increase gold purchases during periods of local currency weakness to boost confidence in their currency.
With the CPI figures already in focus, investors' focus will shift to the Producer Price Index (PPI) release and Initial Jobless Claims numbers.
