Bullion bulletin sponsored by Express Gold Refining
Gold extended its three-day rally after a pivotal US inflation report aligned with market forecasts, reinforcing expectations that the Federal Reserve will cut interest rates next week.
In November, the US consumer price index (CPI) showed a steady 0.3% monthly increase in core inflation—excluding food and energy—for the fourth consecutive month, translating to a 3.3% rise year-over-year. Treasury yields dipped following the data, bolstering gold prices, while traders maintained their bets on the Fed easing rates.
Gold reached an all-time high above $2,790 per ounce in October, driven by the Fed’s shift to easing, haven demand, and central bank purchases. Recently, the People’s Bank of China (PBOC) resumed gold buying after a six-month hiatus, further lifting prices. Analysts at Goldman Sachs suggest the PBOC’s strategic diversification of its USD reserves often aligns with periods of yuan weakness.
Technical factors have also supported gold’s rise, with increased trading volumes pushing prices out of consolidation, according to Chris Weston of Pepperstone Group. Gold was trading at $2,700.52 per ounce early Wednesday, while silver, platinum, and palladium all saw declines.
