Gold Holds Steady, Oil Slumps as Traders Await U.S. PCE Price Index Data

Hello traders, welcome to Friday morning! As we kick off the last trading day of the week, markets are digesting a busy Thursday and preparing for key economic data releases later today. Let’s dive into what’s happening.

Thursday was a whirlwind of events. The Swiss National Bank surprised no one with a 25 basis point rate cut, bringing their interest rate down to 1%. This move was anticipated but still added some pressure on the Swiss Franc, which struggled throughout the session. In the U.S., final GDP data came in at 3%, right on target, providing a steady backdrop for the American economy. But the real surprise came from the durable goods orders and unemployment claims – both of which surpassed expectations. This better-than-expected data lifted sentiment, especially in the U.S. stock markets, pushing indices higher.

This morning, the markets are relatively calm, but we’re seeing some interesting moves. European indices are starting with slight gains, continuing their positive momentum from earlier in the week, while U.S. futures are mixed, indicating a cautious start for Wall Street. The American dollar is showing strength today, bouncing back from recent losses, while the Japanese Yen remains under pressure, continuing its downward slide from yesterday. Gold is pausing after its impressive rally, consolidating around its all-time highs, while oil remains weak, hovering near its weekly lows after a significant drop.

Looking ahead, all eyes are on the upcoming economic data. We’ll get GDP numbers from Canada, which are expected to show a modest growth of 0.1%, and the Core PCE Price Index from the U.S., a key inflation indicator that could influence the Federal Reserve’s next moves. 

Source: https://www.axiory.com/analytics/market-news/gold-holds-steady-oil-slumps-as-traders-await-u-s