The gold market remains stuck in neutral as the U.S. economy continues to deal with mixed inflation pressures. While holding on to some gains, is not seeing much reaction to the latest inflation numbers. August gold futures last traded at $1,966 an ounce, up 0.41% on the day.
The latest inflation data has not impacted interest rate expectations ahead of the Federal Reserve's monetary policy decision, which will be announced later in the day. Markets fully expect the U.S. central bank to leave interest rates unchanged in a range between 5.00% and 5.25%. However, there are solid expectations for the tightening cycle to continue in July.
While inflation has dropped sharply from the highs seen last year, economists note it is still well above the Federal Reserve's 2% target.
The latest inflation data has not impacted interest rate expectations ahead of the Federal Reserve's monetary policy decision, which will be announced later in the day. Markets fully expect the U.S. central bank to leave interest rates unchanged in a range between 5.00% and 5.25%. However, there are solid expectations for the tightening cycle to continue in July.
While inflation has dropped sharply from the highs seen last year, economists note it is still well above the Federal Reserve's 2% target.
