Gold futures prices rise above $2020, a weak dollar, and lower bond yields are supporting the market
InfoQuest – Gold futures prices rose above the 2,020 level, with positive factors from a weaker dollar. And lower US government bond yields.
At 8:52 PM Thailand time, gold contracts will be delivered on the COMEX (commodity exchange) market in February. It added $4.70, or 0.23%, to $2,022.50 per ounce.
A weak dollar increases the attractiveness of gold. This makes gold contracts cheaper for holders of other currencies. As for the decline in US government bond yields, it will help reduce the opportunity cost of owning gold. This is because gold is an asset that does not return in the form of interest.
The US Department of Commerce revealed that the headline personal consumption expenditures price index, which includes food and energy categories, rose 2.6% year-on-year in December. In line with analyst expectations of 2.6% in November.
On a monthly basis, the overall personal consumption expenditures index rose 0.2% in December, in line with analysts' expectations. After falling by 0.1% in November.
As for the Core Personal Consumption Expenditure (Core PCE) index, which does not include the food and energy categories. It is a measure of inflation that the Federal Reserve gives importance to, as it rose 2.9% in December year-over-year. Lower than analysts' expectations of 3.0% from 3.2% in November.
On a monthly basis, the core personal consumption expenditures index rose 0.2% in December, in line with analyst expectations, from 0.1% in November.
The Personal Consumption Expenditure Index is a measure of inflation that can detect changes in consumer behavior. It covers the prices of goods and services more broadly than the Consumer Price Index (CPI).
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