Gold price is retreating from fresh all-time highs of $3,220 in early Europe on Friday. The US Dollar downward spiral and escalating trade war between the United States and China continue to underpin the safe-haven appeal of Gold price. US PPI inflation data and tariff updates remain on tap.
Mounting concerns over the financial stability and the economic situation in the United States (US) have accelerated the selling interest around the US Dollar (USD), pushing Gold price for another ride higher.
The US Federal Reserve's (Fed) independence has always been under threat, and on April 9 US Supreme Court Chief Justice John Roberts reversed a court ruling, temporarily allowing US President Donald Trump's Administration to fire members of independent agencies. Trump could take this opportunity to fire Fed Chair Jerome Powell, raising concerns over the financial stability in the world's largest economy.
At the same time, US recession fears aggravate amid deepening US-China trade war, hinting at aggressive Fed interest rate cuts starting as early as May. President Trump hiked tariffs on Chinese goods to 145%, the White House confirmed on Thursday. China retaliated with 84% tariffs and strengthened ties with Europe and Asia to ease the pressure.
Exacerbating the pain in the Greenback, the US March Consumer Price Index (CPI) inflation came in tamer-than-expected, although it did not show the full impact of the trade war. The US CPI rose 0.1% in March, putting the 12-month inflation rate at 2.4%, down from 2.8% in February. Following the inflation report, traders continued pricing in three or four cuts by the end of the year.
Looking ahead, the US Producer Price Index (PPI) and preliminary University of Michigan (UoM) Inflation Expectations data will be published. However, the data could play second fiddle to tariff talks. A profit-taking recovery rally in the US Dollar cannot be ruled out due to the end-of-the-week repositioning, which could check the Gold price upside. China's response to Trump's 145% tariffs is eagerly awaited.
Source: Fxstreet
Gold price advances during the North American session on Friday as the US Dollar weakens, with traders booking profits ahead of the weekend. Additionally, a Fed Governor's comments turned more dovish ...
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 ...
Gold traded higher early on Friday as the dollar and treasury yields weakened. Gold for August delivery was last seen up US$17.80 to US$3,363.10 per ounce. The price of the precious metal has traded ...
Gold prices rose on Friday (July 18th), but were on track for a weekly decline as concerns about the US Federal Reserve's independence eased and strong US data emerged, while platinum rose to a nearly...
Gold steadied and was set for a moderate weekly loss as investors assessed the outlook for Federal Reserve rate cuts after resilient US jobs and retail data eased concerns about the economy. Bullion ...
The EUYR/USD finished Friday's session with gains of over 0.26% amid a weaker US Dollar, following dovish comments by Fed Governor Christopher Waller, which weighed on US Treasury yields. Still, an improvement in Consumer Sentiment capped the...
The U.S. dollar slipped against the euro on Friday but held on to weekly gains, as investors weighed expected Federal Reserve policy amid signs that tariffs may be starting to increase some inflation pressures and as U.S. President Donald Trump...
Former U.S. President Donald Trump threatened to impose tariffs on members of the BRICS group of nations on Friday, warning the alliance would quickly collapse if it ever becomes a significant economic force. "When I heard about this group from...
The United States Commerce Department is set to impose preliminary anti-dumping duties of 93.5% on graphite imported from China after concluding the...
US stocks advanced on Thursday, supported by upbeat earnings and solid economic data as markets brushed aside lingering concerns over President...
Federal Reserve Governor Chris Waller, an advocate for an immediate interest rate cut, said on Friday he would accept the job as head of the U.S....
Federal Reserve Governor Christopher Waller said on Thursday he continues to believe the U.S. central bank should cut interest rates at the end of...