Gold Price Dynamics Amid US Inflation and Monetary Policy Expectations

Recent Price Movements

Gold prices experienced mixed movements throughout Thursday, slipping 0.4% to $4,323.57 per troy ounce in spot markets ²

. The decline was attributed to dollar strengthening as investors awaited crucial US inflation data that could influence the Federal Reserve's monetary policy decisions.

Factors Influencing Gold Prices

1. Dollar Strength: The US dollar index rose after touching its highest level in nearly a week on Wednesday, making gold more expensive for non-US buyers ²
   Source 2

   https://investasi.kontan.co.id/news/harga-emas-turun-tertekan-dolar-investor-tunggu-data-inflasi-as
   .
2. Inflation Data: The release of US Consumer Price Index (CPI) data showed a slower increase than expected, boosting expectations of further Fed rate cuts ³
   Source 3

   https://investasi.kontan.co.id/news/harga-emas-dekati-rekor-platinum-melonjak-dipicu-inflasi-as
   .
3. Investor Sentiment: Investors took profits following gold's previous day's gain of over 1%, contributing to the price correction ¹
   Source 1

   https://internasional.kontan.co.id/news/harga-emas-dan-perak-terkoreksi-kamis-1812-pagi-investor-ambil-untung
   .

Market Outlook

The gold market is currently balancing between inflation expectations and dollar movements. With the core CPI rising at its slowest pace since early 2021, market participants are betting on continued monetary easing by the Fed, supporting gold's appeal as a safe-haven asset ³

.