In the face of impending US inflation data, global markets have adopted a cautious demeanor, with significant indices across Asia and Europe retreating. The Nikkei 225 in Japan, the DAX in Germany, and the FTSE 100 and CAC 40 in the UK and France, respectively, have all registered losses. The US dollar has surged, bolstered by an uptick in Treasury yields, which has, in turn, pressured gold prices downward. The COMEX June gold futures contract has dipped to $2,331.80 per ounce, reflecting a retreat from the metal’s recent peak performance and marking a stark contrast to earlier projections that saw gold potentially climbing to $2,650 an ounce.Investors’ focus remains squarely on the Federal Reserve’s next steps, with the Beige Book report painting a somewhat grim picture of the economic landscape. The upcoming US GDP data, anticipated for release today, is expected to play a pivotal role in shaping the Fed’s interest rate trajectory. This data release is all the more critical as the probability of a Fed rate cut has been pushed back from March to September, with the market now pricing in a longer path to achieving the Fed’s 2% inflation target. The OPEC+ meeting today is also on the radar, as it could potentially impact crude oil prices, which have seen a slight downturn.
Key points
- Global markets are cautious as investors wait for US inflation data, affecting stock indices and commodity prices.
- Gold prices have declined, with COMEX futures falling to $2,331.
- The Federal Reserve’s Beige Book report suggests a slightly worse economic outlook, with upcoming US GDP data expected to influence future interest rate decisions.
80 per ounce amid a strengthened US dollar and rising Treasury yields.
