Gold Crashes To $2,020 Level, Doesn't Move Even A Little!


 Today, the price of gold was seen slightly lower to the $2,020 level during the Asian opening session earlier in the week. The US dollar recovered slightly due to the strong US Services PMI data and gave a slight bearish move to gold.

However, the US dollar will fall again as the market now expects a 75 basis point decline next year.

The Federal Reserve (Fed) will keep interest rates unchanged at 5.25% to 5.50% during last week's meeting. The Chairman of The Fed, Jerome Powell delivered his 'dovish' stance and indicated the central bank's goal to reduce the inflation rate by the end of 2023 without any increase in interest rates in 2024.

Yesterday, Chicago Fed President Austan Goolsbee argued that it was too early to declare victory in dealing with the central bank's inflation issue and that the decision on interest rate cuts would depend on the latest economic data.

However, the President of the New York Fed, John Williams, was of the opinion to calm the market last Friday by emphasizing that it was too early to implement a rate cut.

The latest data, the US S&P Global Manufacturing PMI fell to 48.2 in December which was the lowest level in four months. Meanwhile, the Services PMI increased to 51.3 above market consensus. The Composite PMI rose to 51.0.

Indirectly, this makes the US dollar attract buyers and jump off the lows. It also acts to restrain the movement of gold prices to continue to dominate the market.

For now, traders will be more focused on the Personal Consumption Expenditure (PCE) Price Index that will be released this Friday. Additionally, US Building and Housing Permits data on Tuesday and Gross Domestic Product for the annual third quarter on Wednesday.

These data will continue to provide a clear picture of the future price of gold.