CFD Capital

24/04/2024

Gold fell under $2,320 per ounce on Wednesday, pressured by reduced safe-haven demand as investors turned towards riskier assets following the easing tensions in the Middle East. Meanwhile, traders are now anticipating the US March personal consumption expenditures data, the Fed's preferred inflation gauge, that could provide further clarity into Fed’s potential monetary course.

On Tuesday, the US PMI data came in weaker-than-expected and was the slowest growth in the country's private sector since December, which tempered worries about the resilient US economy.

Additionally, the price component of the report suggested a deceleration in input costs.

The latest economic figure reignited hopes for Fed’s less restrictive monetary trajectory.

Previously, strong inflation data and hawkish comments from Fed officials led markets to scale back their expectations of loosening policy to just one rate cut this year.