Gold (XAU/USD) emerged as a major beneficiary of the US Dollar (USD) weakness, a theme that is expected to drive prices on Thursday (6/12).
With prices currently hovering around the $3,380 mark, geopolitical risks and the US fundamental backdrop continue to support the safe-haven demand for Gold.
The US Producer Price Index (PPI) data release on Thursday showed that inflation slowed at the wholesale level. The headline PPI showed an annual increase of 2.6% in May, in line with analysts' forecasts, following a 2.5% increase in April. The core PPI, which excludes volatile items, fell to 3% in May, down from 3.2% in April.
Following Wednesday's surprise downside in the CPI figures, further confirmation that price pressures are easing could provide additional support to Gold as expectations for a September rate cut increase.
The threat of conflict in the Middle East escalated after reports that Israel was considering a military strike on Iran and Trump's latest tariff threats supported the precious metal, which has benefited from safe-haven inflows.
Additionally, NBC News reported, citing five people familiar with the matter, that Israel is considering taking military action against Iran in the coming days. At the same time, Trump confirmed on Wednesday that US personnel were being removed from parts of the Middle East due to rising tensions between Israel and Iran. This comes ahead of the sixth round of nuclear talks between the US and Iran, scheduled for later this week.
Recent headlines around trade have also added to the gloomy market mood. Trump has stated that the US will set its own terms for unilateral tariffs, overshadowing the optimistic narrative around the US-China "trade truce" announced on Wednesday.
Trump stated that "We will be sending out letters over the next few weeks to let them know what the deal is." These comments were reported by Bloomberg on Thursday. (alg)
Source: FXstreet
Gold prices rise over 0.44% during Friday's North American session as weaker than expected jobs market data increased the chances that the Federal Reserve (Fed) will cut interest rates next week. At t...
Gold (XAU/USD) trims a part of its intraday gains, though it sticks to positive bias through the first half of the European session on Friday and remains close to the record high touched earlier this ...
Gold prices rose on Friday and were set for a fourth consecutive weekly gain, as mounting concerns over a weakening U.S. labour market eclipsed inflation worries ahead of a widely expected Federal Res...
The Gold price (XAU/USD) edges lower to around $3,630 during the early Asian session on Friday. The precious metal retreats from a record high on some profit-taking. Nonetheless, the rising bets of th...
Gold price trimmed some of its earlier losses on Thursday, yet it remains negative in the day, down over 0.14% as the latest print of consumer inflation was aligned with estimates. Nevertheless, jobs ...
EUR/USD remains steady during the North American session on Friday, poised to end the week with modest gains of over 0.18% as traders brace for the next week's monetary policy decision by the Federal Reserve (Fed). At the time of writing, the pair...
U.S. Treasury Secretary Scott Bessent met with BlackRock Inc executive Rick Rieder in New York on Friday, as the Trump administration continued its search for a new chair for the Federal Reserve, a source familiar with the matter said. Bessent has...
Oil prices rose on Friday after a Ukrainian drone attack suspended loadings from the largest port in western Russia, but gains were capped by concerns about U.S. demand. Brent crude futures settled at $66.99 a barrel, up 62 cents, or 0.93%. U.S....
The International Monetary Fund on Thursday said the Federal Reserve has scope to lower interest rates because of the weakening U.S. labor market,...
Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), fell to 2.6% annually in August from 3.3% in...
The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday...
Annual inflation in the United States (US), as measured by changes in the Consumer Price Index (CPI), rose to 2.9% in August from 2.7% in July, the...