Gold price (XAU/USD) enters a bullish consolidation phase during the Asian session on Friday and oscillates in a range around the $2,715 region, just below a one-month high touched the previous day. Expectations that softer inflation in the US will allow the Federal Reserve (Fed) to cut interest rates further this year led to the recent decline in the US Treasury bond yields and the US Dollar (USD). This, in turn, is seen as a key factor that continues to underpin the non-yielding yellow metal and supports prospects for additional gains.
That said, easing fears about US President-elect Donald Trump's disruptive trade tariffs, along with the Israel-Hamas ceasefire deal, keep a lid on the safe-haven Gold price. Apart from this, growing acceptance that the Fed will pause its rate-cutting cycle later this month, a modest US Dollar (USD) uptick and bets for a Bank of Japan (BoJ) rate hike next week cap the precious metal. Nevertheless, the XAU/USD remains on track to register gains for the third straight week as traders look to the US housing market data for some impetus.
US data released this week pointed to signs of abating inflation and fueled speculations that the Federal Reserve will cut rates twice this year, which, in turn, benefitted the non-yielding Gold price.
Adding to this, Fed Governor Christopher Waller said on Thursday that inflation is likely to continue to ease and three or four rate cuts are still possible this year if US economic data weakens further.
The outlook for the Fed's rate cuts this year led to a further decline in the US Treasury bond yields and kept the US Dollar close to a one-week low, lending additional support to the XAU/USD.
Meanwhile, a report published by the US Commerce Department showed that Retail Sales increased 0.4% in December and the previous month's reading was also revised higher to show a 0.8% gain.
Furthermore, the Philly Fed's Manufacturing Index surpassed even the most optimistic estimates and surged to the highest level since April 2021, to 44.3 this month from a revised -10.9 in December.
Separately, the US Labor Department reported that Jobless Claims – a key indicator of the health of the U.S. labor market – rose from 203K previous to 217K during the week ending January 10.
The data reaffirmed expectations that the Fed will pause its rate cycle later this month amid worries that US President-elect Donald Trump's policies will stoke inflation.
Israeli Prime Minister Benjamin Netanyahu announced on Friday that a ceasefire deal that would pause 15 months of war with Hamas and release hostages held in Gaza has been reached.
Friday's US economic docket features the release of Building Permits, Housing Starts and Industrial Production figures, which might influence the USD and the precious metal.(Cay) newsmaker23
Source: Fxstreet
Gold (XAU/USD) steadies on Tuesday, halting a four-day slide after dipping to a near three-week low around $3,300 on Monday. The slight rebound comes despite a broadly risk-on mood that has kept deman...
Gold held steady as investors prepared for the Federal Reserve's policy decision, a series of key economic data, and the outcome of US trade negotiations. Gold bullion prices traded in a narrow range...
Gold prices rose on Tuesday (July 29th) as initial euphoria over the US-EU trade truce subsided, while investors awaited the upcoming Federal Reserve policy meeting for clarity on the direction of US ...
Gold prices were little changed on Tuesday, hovering near a three-week low, as easing fears of a global tariff war and a stronger dollar dampened bullion's safe-haven appeal. Spot gold held its groun...
Gold consolidates in the early Asian session, but may be weighed by trade-deal hopes. The Trump administration engaged in negotiations with China in Sweden on Monday, with additional discussions expec...
European stock markets closed higher in Tuesday trading as the Stoxx Europe 600 was up 0.33%, Germany's DAX climbed 1.03%, the FTSE 100 gained 0.60%, France's CAC 40 advanced 0.72%, and the Swiss Market Index rose 0.37%. In Spain, GDP rose 0.7% in...
Gold (XAU/USD) steadies on Tuesday, halting a four-day slide after dipping to a near three-week low around $3,300 on Monday. The slight rebound comes despite a broadly risk-on mood that has kept demand for safe-haven assets subdued. Optimism around...
The United States and the European Union agreed on a framework trade deal to end months of uncertainty for industries and consumers. The two sides aim to produce a joint statement to clarify what they have agreed to, but here are the main elements...
Europe's Stoxx 600 index erased earlier gains to close 0.23% lower as investors turned less positive over the details of the U.S.-EU trade...
The European Union and the U.S. will form a "metals alliance" to counter the impact of subsidised Chinese production on global markets, as part of...
The Dow Jones Industrial Average (DJIA) tested all-new record highs early Monday, clipping into the high side in early trading before the weight of...
The United States and European Union have reached a landmark trade agreement that includes a 15% tariff on EU goods entering the U.S., President...