German Bank: Fed rate cut may be postponed until May

According to Jin10's report, the number of new jobs added in the United States in December exceeded expectations, but the data for previous months was revised downward. A strategist from Deutsche Bank stated that there is no evidence indicating significant weakness in the US labor market, and these data may encourage those who continue to expect a soft landing for the US economy. Therefore, the timing of a rate cut by the Federal Reserve may be later, which also explains why gold prices are currently declining.

Although economists at Deutsche Bank still believe that the United States will enter a recession, a strong labor market supports their view that the Fed may not cut rates until May for the first time instead of cutting them earlier. In this case, Deutsche Bank believes it is reasonable for gold prices to weaken slightly in the short term.