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Gold Price Forecast: Bullish Breakout Continuation Hinges on US Jobs Data

March 2, 2024

Via: DailyFX

Gold prices (XAU/USD) staged a remarkable rally this past week, breaking past key technical thresholds to reach their highest point since December 2023. By Friday’s close, the precious metal had notched a substantial weekly gain of 2.33%, settling near $2,082.

Bullion’s bullish momentum can be attributed in part to a moderate pullback in U.S. Treasury yields, a reaction triggered by two significant economic reports that left investors pondering their implications for the Federal Reserve’s monetary policy stance.

To start, January’s core PCE deflator came in at 0.4% m/m and 2.8% y/y, meeting consensus estimates. Wall Street, rattled by recent CPI and PPI data, had been bracing for another upside inflation surprise, but was relieved when the FOMC’s preferred price gauge landed precisely on its expected mark.

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