Gold is trading with a slight positive tilt in Friday’s Asian session.
On Friday, the gold price (XAUUSD) recovered some lost ground to approximately $2,570 after hitting a two-month low the previous day. The precious metal’s upside potential may be constraine by the strong US Dollar (USD) and increased uncertainty about the Federal Reserve’s (Fed) pace of interest rate reductions.
Donald Trump’s actions resulted in anticipation of increased inflation next year fewer predicted rate cuts, impacting on the yellow metal.
Donald Trump’s actions resulted in anticipation of increased inflation next year fewer predicted rate cuts, impacting on the yellow metal. Higher interest rates make owning non-yielding assets like gold less tempting. However, rising tensions in the Middle East and the ongoing conflict between Ukraine and Russia may raise the price of gold, a traditional safe-haven asset. Investors will be watching for the October US Retail Sales report, which will be release later on Friday. Additionally, the NY Empire State Manufacturing Index and Industrial Production figures will be release. Susan Collins and John Williams of the Federal Reserve scheduled to talk later in the day.
Daily Market movers: Gold price trades with minor increases; US Dollar spike may limit its upside.
Fed Chair Jerome Powell stated on Thursday that the US economy has performed “remarkably.” good,” allowing the Fed to gradually decrease interest rates, according to Bloomberg.
Richmond Fed President Thomas Barkin remarked on Thursday that, while the Fed made significant progress thus far, there is more work to be done to maintain the momentum.
According to the US Bureau of Labor Statistics on Thursday, the US Producer Price Index (PPI) increased 2.4% year on year in October, up from 1.9% in September (revised from 1.8%). This amount exceeded the market’s expectation of 2.3%.
US Retail Sales report for October will be release later on Friday.
The US weekly initial jobless claims for the week ending November 9 increased to 217K from the previous week’s 221K, falling short of expectations of 223K.
According to the CME FedWatch Tool, the markets have priced almost 59.1% The Fed cut rates by 25 basis points (bps) at its December meeting, down from 75% last week.
