Gold rose more than 0.50% in the North American session yesterday (Thursday) after the release of the Federal Reserve's (Fed) preferred inflation gauge and the Core Personal Consumption Expenditure (PCE) Price Index which were in line with forecasts.
Economic data confirmed that the ongoing disinflationary situation has caused a decline in US Treasury bond yields which had the opposite effect on the price of the yellow metal.
Now, the price of gold is at $2,044.19 which is a loss of 0.01% since opening early this morning.
The most awaited report of the week was finally released by the US Bureau of Economic Analysis revealing the Core PCE data. Annual figures moved as expected with inflation easing from 2.9% in December to 2.8% in January.
Overall inflation fell sharply from 2.6% to 2.4% for January and it was in line with market forecasts.
The data gave a boost to gold prices after US Treasury bond yields plunged on expectations that interest rate cuts could arrive earlier than forecast.
Following that, the probability of an interest rate cut by the market is expected in June with the possibility increasing from 39% to 50.9% for now.
Meanwhile, market participants are now presented with a variety of US economic data at 11 o'clock this evening which is capable of upsetting the price of gold at the end of the week,
