Saturday, 19 July 2025
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Gold price buoyed by dovish Fed despite despite a rise in sentiment
Friday, 18 July 2025 23:33 WIB | GOLD |GOLD

Gold (XAU/USD) is trading higher on Friday as investors remain focused on Fed expectations US economic data. At the time of writing, XAU/USD recovers above $3,350, pushing the price closer toward the upper boundary of a symmetrical triangle pattern.

Traders are digesting fresh US housing data released on Friday, with Building Permits and Housing Starts for June providing further insight into the health of the real estate sector which improved significantly.

Meanwhile, the University of Michigan (UoM) released the first set of preliminary Sentiment data which rose to 61.8 in Jyl, from 60.7 in June and higher than the estimated 61.5. This reflects an increase in consumer confidence in the US.

At the same time, the UoM 1-year inflation expectations for July fell to 4.4% from 5%, while the 5-year inflation expectations also came in softer at 3.6%, declining from 4% the previous month.

As the Federal Reserve (Fed) continues to hold interest rates within the current 4.25%-4.50% range, investors continue to search for fresh clues on when the Fed may reduce rates. According to the CME FedWatch Tool, markets are pricing in a 57.8% probability of a 25 basis point (bps) rate cut in September, with the likelihood of the Fed keeping rates unchanged at the same meeting at 39.5%.

Source: Fxstreet

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