Gold prices edged up on Monday to trade near its record peak, helped by a weaker U.S. dollar, while investors looked ahead to a key inflation report due later this week to gauge the Federal Reserve's interest rate trajectory. Spot gold rose 0.3% to $2,943.50 an ounce as of 0957 GMT after scaling an all-time high of $2,954.69 last week. U.S. gold futures added 0.2% to $2,958.20. "The dollar's move lower this month has enabled spot gold to be kept around its record highs, supported by a surge of inflows into bullion-backed exchange traded funds," said Han Tan, Exinity Group chief market...
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, recovers the nearly 0.50% loss it incurred in the opening hours in the Asian markets and trades flat near 106.60 at the time of writing on Monday. The initial move down in the US Dollar came in due to euphoria for the Euro (EUR) after the first German election results showed a firm lead for the Christian Democratic Union of Germany (CDU), which will take the lead in forming a coalition. As the dust settles, this means that fundamentally, no big changes will take place in Germany...
Gold's price (XAU/USD) is holding on to intraday gains on Monday, trading near $2,947 at the time of writing, supported by a weaker US Dollar (USD) and softer US yields in a reaction to the recent German federal election outcome. Although the far-right party Alternative for Germany (AfD) has gained 20% of votes, the Christian Democratic Union of Germany (CDU) is comfortable in the lead with 208 seats against AfD's 152. US yields dropped off and the CME Federal Reserve (Fed) Futures are now favoring a 25 basis points (bps) rate cut in June, where last week odds were rather for no rate cut in...