The global ounce price fell today and recorded a low at 1980 dollars per ounce after yesterday falling to the lowest level in more than two weeks at 1975 dollars per ounce, and after the release of US inflation data, which witnessed inconsistencies in its figures.
The Consumer Price Index (the main inflation measure) for November rose by 0.1% higher than the previous reading by 0.0%, and the annual reading showed a decline to the level of 3.1% from the previous reading of 3.2%.
Conflicting readings of the inflation index caused the price of an ounce of gold to fall today, but only to a limited extent, especially since the unclear reading forced the markets to postpone the impact on the gold price until after the US Federal Reserve meeting on Wednesday.
Global gold is under a negative impact from last Friday after the US jobs report, which showed a new job increase of 199 thousand jobs compared to the previous reading of 150 thousand jobs, in addition to the unemployment rate falling to 3.7% from its highest level in two years at 3.9%.
The goldbillion analysis pointed out that the strength of the jobs data indicates the continued resilience of the US economy and support for inflation rates, and therefore the Fed postponed the decision to cut interest rates after the markets were expecting that the rate cut would begin in March 2024.
The interest rate cut is the biggest support for World Gold prices, and therefore, because the Fed is late in making this decision, it negatively affected the world gold price, and today’s inflation data helped to increase these expectations and therefore the price of an ounce of gold fell today.
The biggest impact on the world gold price will be after the Federal Reserve meeting, which will determine the future of monetary policy and the interest rate during the coming period, especially with the release of Fed members ‘ forecasts on interest rates.
