Posted 1/9/2024, 11:30:00 PM
Gold and Yen Slip on Concerns of Overly Dovish Fed Rate Cut Bets; inflation Data Critical to Outlook
- Gold prices and Japanese yen recently stumbled after strong run in late 2023 on concerns over Fed rate cuts being over-discounted
- U.S. inflation data out this Thursday critical for providing clarity on policy outlook and future moves
- Gold needs to regain $2,045-2,050 area and yen strength (weaker USD/JPY) for bullish momentum
- USD/JPY facing resistance at 146.00; needs to break above that and 147.00 for more gains
- Fed could delay rate cut plans if inflation fails to show further progress, leading to yields rising and pressuring gold and yen