Locked in Gold Prices

Gold prices are locked in the US CPI figures to be announced on January 12. Annual inflation, which was 7.1 percent in November, is expected to decline to 6.6 percent in December. For this reason, the FED's prediction of an extra tightening in monetary policy is weakening. Parallel to this, the weak outlook in the dollar index and the rise in the ounce of gold continues.

Although non-farm employment announced last week was higher than expected, inflationary pressure concerns did not arise due to the “under-expected” increase in hourly wages. This development did not reflect negatively on the ounce gold side.

However, in the December meeting notes of the FED; Signals were also received that interest rates would not be regressed immediately, as inflation is still far above the target of 2 percent. This situation may put pressure on gold in the future.shu