Gold rose for the second day in a row.
Despite a minor rise in the US dollar, the gold price (XAUUSD) gained pace on Friday. The yellow metal rises as many experts predict that a worsening job market will lead the Federal Reserve (Fed) to lower interest rates sooner than previously projected in order to encourage economic development. Furthermore, rising geopolitical fears are likely to boost gold’s market value.
The aggressive Fed talks may generate unfavorable headwinds for gold.
However, the aggressive US Fed talks about interest rates. And the higher US currency (USD) This could put pressure on gold prices. Gold traders will be watching the first report of the US Michigan Consumer Sentiment Index for May. As well as remarks by Fed officials Bowman, Goolsbee, and Barr. Next week, the US Consumer Price Index (CPI) report will be the focus.
Daily Market Movers: Gold price remains bullish amid Fed’s aggressive rhetoric.
Mary Daly, president of the San Francisco Fed, stated. That uncertainty over the inflation outlook makes policy forecasts difficult until the Fed has greater information.
Israeli military gathered tanks and commenced fire near Rafah’s built-up areas on Thursday. Following President Joe Biden’s statement. That the US would withhold arms from Israel if its forces launched a major invasion of the southern Gaza Strip.
Weak employment figures fueled concern that a faltering economy would push the Fed to slash interest rates.
The US initial jobless claims for the week ended May 4 increased to 231K from 209K the previous week. Exceeding the market consensus of 210K. This statistic reached its greatest level since August 2023, signifying the labor market. Was cooling.
Coupled with April’s disappointing US Nonfarm Payrolls (NFP) of 175,000 new jobs. These reports depict a picture of a slowing US economy.
According to the WGC study, the increase in global gold demand was mostly driven by strong over-the-counter. Market investment, continuing central bank purchases, and rising demand from Asian customers.
The preliminary US University of Michigan Consumer Sentiment Index is predicted to fall in May from 77.2 in April to 76.0.
