COMEX Gold futures extended gains on Friday, rising 1.5% to over $2,653 per ounce as a softer dollar and declining Treasury yields after U.S. economic data indicated a slowdown in inflation provided support.
U.S. economic data indicated a slowdown in inflation, with the Personal Consumption Expenditures (PCE) price index rising just 0.1% in November, following an unrevised 0.2% increase in October. The weaker-than-expected personal income and spending data further suggested a softening economic landscape, prompting some investors to re-enter the gold market and rebuild positions.
The dollar index fell 0.5% from its two-year high, making gold more affordable for overseas buyers, while 10-year Treasury yields retreated from their six-month peak. However, the Federal Reserve’s "dot plot" signaled only two 25-basis-point rate cuts by 2025, tempering hopes for aggressive monetary easing.
Meanwhile, COMEX silver also jumped 1.7% to trade near $29.9 per ounce but headed for its worst weekly performance since July 2024, reflecting broader pressure on precious metals amid shifting rate expectations.
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U.S. economic data indicated a slowdown in inflation, with the Personal Consumption Expenditures (PCE) price index rising just 0.1% in November, following an unrevised 0.2% increase in October. The weaker-than-expected personal income and spending data further suggested a softening economic landscape, prompting some investors to re-enter the gold market and rebuild positions.
The dollar index fell 0.5% from its two-year high, making gold more affordable for overseas buyers, while 10-year Treasury yields retreated from their six-month peak. However, the Federal Reserve’s "dot plot" signaled only two 25-basis-point rate cuts by 2025, tempering hopes for aggressive monetary easing.
Meanwhile, COMEX silver also jumped 1.7% to trade near $29.9 per ounce but headed for its worst weekly performance since July 2024, reflecting broader pressure on precious metals amid shifting rate expectations.
Disclaimer: https://www.kotaksecurities.com/disclaimer/commodities/