On Thursday, in Asian trading, gold prices remained almost unchanged, strengthening in the established trading range of $2000-2050 per ounce. This is due to market speculation about when the Federal Reserve will start lowering interest rates. The current gold quote is $2,046. Despite the fact that signals of a possible rate cut from the Fed helped the metal overcome the level of $2,000 per ounce, further growth proved difficult due to increased risk appetite and traders' doubts about this very rate cut. Doubts are based on the fact that the inflation rate is still significantly higher than the Fed's target of 2% per annum. The market also expects the release of a number of economic data this week, including revised US GDP data for the third quarter, which is expected to be released later on Thursday. The strengthening of the US economy provides the Fed with more opportunities to maintain high interest rates for a longer period. Weekly data on applications for unemployment benefits in the United States are also expected today, and on Friday the PCE price index, which is the Fed's preferred inflation indicator, is expected. Inflation and the labor market are key factors for the Fed, given the resilience of both sectors in recent months. However, any signs of a slowdown in the economy are likely to lead to a decline in the dollar and an increase in gold prices. With a decrease in the interest rate, the precious metal becomes more attractive for investment, since a high interest rate increases the opportunity costs of investing in gold.
