- Not as scorching as anticipated, the US PPI comes in.
During the month of January, retail sales fell short of market estimates and went negative.
As a result of being technically oversold, gold is currently correcting upward. - The United States Producer Price Index (PPI) comes in, and it is not as blistering as was feared
- There was a downward trend in retail sales during the month of January, which was a result of falling short of market predictions.
- Gold prices are now correcting upward as a result of the fact that they have been technically oversold.
The decline in consumer spending over the last three months caused yields on US Treasury securities and the greenback to fall on Thursday. However, this did not significantly alter market views that the Federal Reserve would not begin reducing interest rates until the end of the first half of the year. As a result of the statistics that revealed that inflation in the United States remained more stubborn than anticipated in January, the likelihood of an early rate drop decreased on Tuesday of this week. Current market pricing indicates that the first drop of 25 basis points will take place at the meeting of the Federal Open Market Committee on June 12th. Over the past two weeks, the price of gold has precipitously dropped as a result of the recent scaling back of expectations for a reduction in the United States’ interest rate.