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Eurozone Inflation Hits 2% Target as Dollar Holds Firm and Precious Metals Retreat

Investors look to the U.S. jobs report as rate‑cut bets outpace the Fed's own guidance.

Overview

  • Eurostat reported headline eurozone inflation at 2% in December, with core inflation at 2.3%, easing pressure ahead of the European Central Bank’s February 5 meeting.
  • The ECB has signaled no rush to adjust policy, reinforcing expectations that the 2% deposit rate remains unchanged through 2026.
  • The U.S. dollar stayed near recent highs as markets weighed mixed labor and services data and awaited Friday’s nonfarm payrolls report.
  • Profit-taking and a firm dollar pulled precious metals back from late-December records, with spot gold down 0.7% to $4,466.19 and silver down 1.2%, while platinum and palladium also declined.
  • President Donald Trump announced an agreement for exports of up to $2 billion of Venezuelan crude to the United States, suggesting a shift in oil flows that could affect commodity sentiment.