Gold prices are trading in today’s European session above 2380 levels.
Gold prices seemed poised for a second consecutive weekly increase on Friday, buoyed by recent U.S. inflation figures that heightened anticipation of potential interest rate cuts by the Federal Reserve, consequently exerting pressure on the dollar and Treasury yields.
Despite data this week suggesting a moderation in inflation, the Fed has not overtly altered its stance regarding the timing of expected rate reductions, which investors widely anticipate to commence this year.
While gold is traditionally viewed as a hedge against inflation, elevated interest rates elevate the opportunity cost of holding onto non-interest-bearing assets like gold.
