Gold futures rose 1.1% to $2,711.90 per troy ounce, extending gains fueled by Tuesday’s softer-than-expected producer price index data and a weaker dollar. The December consumer price index increased to 2.9% from November’s 2.7%, matching market expectations and slightly strengthening arguments for eventual Federal Reserve easing. That outlook has supported demand for non-interest-bearing bullion, although mixed macro signals are keeping some market participants cautious.
Analysts at StoneX say bond yields remain a headwind in the near term, limiting how far gold can rally immediately. At the same time, they remain constructive on the metal’s medium- to long-term trajectory, forecasting a potential move toward $3,000 per ounce later in 2024 if inflation trends and central bank policy evolve as anticipated. In sum, current data have lifted gold’s appeal, but investors are watching interest rates and real yields closely for clues on the pace and sustainability of any further gains.
