The probability of the Fed cutting interest rates in March next year has risen to 80%! Spot gold surged and then fell back.
First Gold Network December 22: The final value of the US third-quarter GDP was released on Thursday evening Beijing time. Data showed that the final value of the year-on-year quarterly rate of real GDP in the third quarter of the United States was 4.9%, while the previous revised value was 5.2%. In addition, the PCE data was also lower than expected. Multiple data points weaker than expected have further strengthened market expectations of a rate cut, with the probability of the Fed cutting interest rates in March next year rising back above 80%. Spot gold opened at $2045.94 per ounce today, reaching a high of $2054.88 per ounce and a low of $2045.84 per ounce. As of press time, it is temporarily reported at $2049.10 per ounce, up 0.16%. Spot gold rebounded slightly on Thursday. In the early Asian session today, it once surged to $2054, then fell back, and as of press time, it fluctuated around $2049. From the 1-hour chart, the red momentum column continues, and the bulls still have a slight advantage. Data released by the US Bureau of Economic Analysis (BEA) on Thursday showed that the final value of the year-on-year quarterly rate of real GDP in the third quarter of the United States was 4.9%, which is the same as the initial value of 4.9% first announced, but lower than the revised value of 5.2%. The BEA noted: "Real GDP growth reflects growth in consumer spending, private inventory investment, exports, state and local government spending, federal government spending, residential fixed investment, and non-residential fixed investment." The agency emphasized that the difference between the second and third estimates was based on "more complete source data." Another data released on the same day showed that the number of initial jobless claims in the United States for the week ending December 16 was 205,000, lower than the expected 215,000. In addition, the final value of the year-on-year quarterly rate of the core PCE price index in the third quarter of the United States was 2%, lower than the expected 2.30%. Although Fed officials have been trying to curb market expectations of rate cuts after last week's policy meeting, investors have been largely unaffected and continue to increase their bets on rate cuts. A series of downward revisions to economic data have solidified the prospect of rate cuts, with the probability of the Fed cutting interest rates in March next year rising back above 80%. Lower inflation and a robust labor market create an optimistic macroeconomic backdrop, which will strengthen Wall Street's expectations of a soft landing for the US economy. FXStreet analyst Haresh Menghani wrote in a recent article on Thursday that gold attracted some bargain-hunting amid a softening risk appetite and a slight decline in the dollar. The fundamental background is favorable to gold bulls and supports the prospect of further gold price increases. However, gold prices need to break through the short-term trading range to reaffirm the bullish trend.
Time:
2023-12-22 14:00
First Gold Network reported on December 22 that the final value of the US third-quarter GDP was released on Thursday evening, Beijing time. Data showed that the final value of the US third-quarter real GDP annualized quarter-on-quarter rate was 4.9%, while the previous revised value was 5.2%. In addition, the PCE data was also lower than expected. Multiple data points weaker than expected have further strengthened market expectations of a rate cut, with the probability of the Fed cutting interest rates in March next year rising above 80%.
Spot gold opened at $2045.94 per ounce today, reaching a high of $2054.88 per ounce and a low of $2045.84 per ounce. As of press time, it is temporarily reported at $2049.10 per ounce, up 0.16%.
Spot gold rebounded slightly on Thursday. In the early Asian session today, it once surged to $2054, then fell back, and as of press time, it is fluctuating near $2049. From the 1-hour chart, the red momentum column continues, and the bulls still have a slight advantage.
Data released by the US Bureau of Economic Analysis (BEA) on Thursday showed that the final value of the US third-quarter real GDP annualized quarter-on-quarter rate was 4.9%, which is the same as the initial value of 4.9% first announced, but lower than the revised value of 5.2%.
The BEA noted: "Real GDP growth reflects growth in consumer spending, private inventory investment, exports, state and local government spending, federal government spending, residential fixed investment, and non-residential fixed investment." The agency emphasized that the difference between the second and third estimates was due to "more complete source data." Another data released on the same day showed that the number of initial jobless claims in the US for the week ending December 16 was 205,000, lower than the expected 215,000. In addition, the final value of the US third-quarter core PCE price index annualized quarter-on-quarter rate was 2%, lower than the expected 2.30%.
Although Fed officials have been trying to curb market expectations of rate cuts after last week's policy meeting, investors are almost unaffected and continue to increase their bets on rate cuts. A series of downward revisions to economic data have solidified the prospects for rate cuts, with the probability of the Fed cutting interest rates in March next year rising above 80%. Lower inflation and a robust labor market create an optimistic macroeconomic backdrop, which will strengthen Wall Street's expectations of a soft landing for the US.
FXStreet analyst Haresh Menghani wrote in a recent article on Thursday that gold attracted some bargain-hunting amid a softening risk sentiment and a slight decline in the dollar. The fundamental background is favorable to gold bulls and supports the prospect of further gold price increases. However, gold prices need to break through the short-term trading range to reaffirm the bullish trend.
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