Gold price struggles for a direction ahead of US core PCE price index data
Gold price (XAU/USD) slips marginally below $2,040 ahead of the United States core Personal Consumption Expenditure price index (PCE) data for November, which will be released on Friday. The underlying inflation data is expected to soften further amid higher interest rates by the Federal Reserve (Fed).
Despite warnings from Fed policymakers that the central bank is currently focusing on keeping interest rates restrictive to ensure a return of inflation to 2%, investors lean toward investing in Gold due to optimism over rate cuts in 2024. Contrary to the median projection of three rate cuts by the Fed in its monetary policy announcement last week, Atlanta Fed Bank President Raphael Bostic sees only two rate cuts. Gold price faces selling pressure but remains inside Tuesday’s trading range as investors await the Fed’s preferred inflation gauge for further action. The broader appeal for Gold is bullish as its price is confidently sustaining above the 20-day and 50-day Exponential Moving Averages (EMAs). Momentum oscillators, namely the Relative Strength Index (RSI) (14), is hovering near 60.00. A decisive break above the same would trigger a bullish momentum.