Gold was stable as investors evaluated the Fed’s policy outlook

As investors assessed the Federal Reserve’s policy stance, gold experienced a minor disappointment, closing down -0.08% at 62249. To avoid impeding progress in lowering U.S. interest rates, the governor of the Federal Reserve has advocated for caution.

The Conference Board announced that the consumer confidence index in the United States fell to 106.7 in February from a revised 110.9 in January, marking the third consecutive month of improvements in consumer confidence.

The lowest level since March 2020, consumer inflation expectations also dropped to 5.2%. In line with the Federal Reserve’s commitment to a protracted restrictive monetary policy until additional evidence regarding inflation attaining the 2% target, Commerzbank (ETR: CBKG) projects that Fed Funds rates will drop to 4.25% by the end of 2025.

Technically speaking, there has been a long liquidation of Gold, as seen by a -0.82% decrease in open interest that ended at 12889 and a -52 rupee price reduction.

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