The Bureau of Labor Statistics’ February CPI release had an immediate impact on markets this morning; gold spot prices decreased by more than 1% to trade in the $2,165 range. Similarly, silver spot prices dropped to trade in the low $24 range. The February CPI release showed a 3.2% rise over the previous 12 months in February, slightly more than the predicted 3.1% forecast. With hotter than expected inflation in both January and February, the inflation front could affect potential rate cuts.
Update: Despite volatile monthly inflation data for 2024 and a strong job market, Chair Powell confirmed during the March FOMC meeting that interest rates will stay the same since July with 3 projected rate cuts by end of year. Fed continues plan of slowing down its balance sheet with a change of pace reduction adjustment in the near future. Gold prices shoot up, trading around $2,177 after the news. Silver prices boost up too, trading around $25.30.
Ready to invest? This is an opportune time to consider adding precious metals to your investment portfolio.
Shop Gold, Silver and Platinum on Bullionexpress.com today and we’ll help you get started! Stay in the know and sign up for precious metals spot price alerts.