Market participants in the gold market today are likely to focus mainly on the release of US inflation data for January. Commerzbank economists analyze the outlook for the yellow metal before the consumer Price index (CPI).
US inflation data focuses on the gold market
Although the rate of inflation is likely to have fallen further in January, it is unlikely to be enough to revive interest rate cut expectations that have disappeared from the market. The price of gold could therefore fall further in the short term.
However, our economists continue to expect an initial Fed rate cut in May and a significant rate cut later in the year. The current weakening of the gold price should therefore only be temporary.