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Gold slips below $2,040 as dollar strengthens; US inflation data eyed

November 30, 2023

LONDON (November 30) Gold prices retreated from recent highs on Thursday, dropping below the $2,040 per ounce level as the US dollar edged up. The gains for the dollar came after euro zone inflation data dampened expectations for interest rate hikes by the European Central Bank.

By 10:35 GMT gold was trading at $2,039.

Traders are now focused on key US inflation figures due later today. The personal consumption expenditures (PCE) price index for October is seen as crucial in gauging the Federal Reserve’s future policy moves. Markets expect a less hawkish Fed stance in light of recent data.

Earlier this week, gold hit a 7-month peak of $2,052 on a weaker dollar and increased safe-haven demand. Prices were around $30 away from this year’s record high. Short-term technical indicators show an overbought market, but analysts forecast further upside with year-end targets at $2,080 and beyond.

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