Gold price climbs during the North American session on Wednesday, up by 0.30% as investors continue to increase their bets that the Federal Reserve (Fed) will reduce interest rates at the September meeting. At the time of writing, XAU/USD trades at $3,357, above a key technical support level.
The latest inflation report in July showed mixed readings as the headline Consumer Price Index (CPI) remained unchanged, while core figures rose. Nevertheless, traders seem convinced that the Fed Chair Jerome Powell and Co. will resume its easing cycle in September.
Voices within the Trump administration echoed some of the US President's demands to the Fed to lower rates. The Treasury Secretary Scott Bessent said the Fed should start cutting 50 basis points (bps) at the next meeting, adding that rates should be between 150 to 175 bps lower.
In the meantime, European and Ukrainian leaders were set to talk with Trump, before the Russian President Vladimir Putin meets him in Alaska to discuss a truce in Ukraine. Regarding trade talks, Washington and Beijing extended their trade truce by 90 days.
The lack of economic data left traders adrift, with Federal Reserve officials crossing the wires, led by Chicago Fed President Austan Goolsbee and Atlanta's Raphael Bostic.
Traders will eye further data releases as the US schedule remains busy. Ahead awaits PPI data, Jobless Claims for the week ending August 9, Retail Sales, and the University of Michigan Consumer Sentiment index.
Source: Fxstreet
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data promp...
Gold prices strengthened on Wednesday, supported by a weaker US dollar and falling US bond yields after the latest economic data reinforced the narrative that the Federal Reserve is likely to continue...
Gold experienced a slight correction in the European session on Tuesday (February 10th), but remained above $5,000/oz as the market held its breath ahead of a series of US data that could alter intere...
Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of low...
Gold prices are still struggling to turn an intraday rebound into a sustained rally. After briefly falling to $4,654 (a four day low) and rebounding, prices were again rejected near $4,900. In the Eur...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...