Gold price was trading down against a higher US dollar.
On Friday, the gold price (XAUUSD) fell to a two-week low on increasing demand for the US dollar. The US Federal Reserve’s (Fed) decreasing chances of cutting interest rates in September put some selling pressure on XAU. Nonetheless, safe-haven flows amid escalating geopolitical concerns in the Middle East may drive up the gold price.
Investors will focus on the Fed’s Waller speech, the US Durable Goods Order, and the Michigan Consumer Sentiment Index report.
Gold investors will draw more signals from Fed talk. The Fed’s Waller is scheduled to We will speak on Friday. The hawkish views made by Fed policymakers may put additional pressure on gold. It is worth mentioning that a higher interest rate often lowers gold prices since it raises the opportunity cost of investing in the yellow metal. Aside from that, the US Durable Goods Orders and Michigan Consumer Sentiment Index will be issued.
Daily Market Movers: Gold price falls from record highs on Fed’s aggressive rhetoric.
The US initial jobless claims declined by 8K to 215K in the week ending May 18. This amount was lower below the anticipated of 220K and the prior week’s reading of 223K.
The flash US S&P Global Manufacturing PMI increased to 50.9 in May from 50.0 in April. The Services PMI rose to In May, the reading increased to 54.8 from 51.3 the prior month. Both results exceeded expectations.
The US S&P Global Composite PMI rose to 54.4 in May from 51.3 in April, exceeding market expectations of 51.1 and reaching its highest level since April 2022.
Atlanta Fed President Raphael Bostic said he still sees rising inflation pressure, but the Fed may need to be more patient to prevent heating up the economy.
According to the most recent study by Gainesville Coins’ Jan Nieuwenhuijs, China’s private sector bought 543 tonnes of gold in Q1 2024, while the People’s Bank of China (PBoC) added an additional 189 tonnes to its reserves.
Gold imports to India, the world’s second-largest gold consumer, may drop by approximately a fifth According to Reuters, high costs in 2024 will encourage retail shoppers to trade old jewelry for new products.
