Metals were more vital after yesterday’s unexpected inflation data in the United States. While the title Consumer Price Index increased by 0.3% in January, as was exacted, the underline CPI was low, whereas analysts had foretold a 0.2% gain. The flat inflation reading implies that the US economy needs an extra boost to improve the coronavirus epidemic effects.
Yesterday, US Federal Reserve Chairman Jerome Powell gave an expression, which markets estimated relatively dovish. He spoke about the advantages of a strong labor market and said that at present, we are a great way from such a labor market.
The Chairman also restated that the Federal Reserve would keep the accommodative monetary policy until the labor market state develops significantly and yearly inflation reaches the 2% target. The Fed also projects inflation to exceed the target for a while so that the average inflation will be at 2% for a period.
Geopolitical news and the market
With very some macroeconomic reports listed for the rest of the week, the metal market will react mostly to the general market sentiment. Geopolitical news can also influence the market. In particular, traders observe US-China relations developments after the first telephone call between US President Joe Biden and Chinese President Xi Jinping.
Futures for delivery of gold in April increased by $1.9 (0.1%) to $1,844.6 per troy ounce as of 8:50 GMT on COMEX today. Silver for delivery in March rose by $0.15 (0.56%) to $27.23 per ounce. Spot price for platinum increased by $17.46 (1.4%) to $1,263.67 per ounce and palladium improved by $2.86 (0.12%) to $2,370.97 per ounce. March copper bound up by $0.0035 (0.09%) to $3.776 per pound.