Gold will continue to grow due to decreasing inflation in the U.S.

On Friday, the growth of gold prices was observed. It will last for four weeks in a row as the data on consumer inflation in the US showed a weakening of price pressure. As expected, it happened in December after all conditions for slowing growth of interest rates had been created. 

Traders prepare for the situation when pressure from a dollar and Treasury yields will weaken soon. 

The growing expectations that the pace of the Fed’s interest rate hiking will slow down caused strong fluctuations of gold since late December. Such instability was driven by decreased pressure in the precious metal. 

Currently, the markets assess a near 95% possibility that it will be decided to raise rates by 25 basis points at the February Fed meeting. This forecast was made using the Fedwatch CME Group instrument.