Gold declines after hitting a one-month high earlier Thursday.
The gold price (XAUUSD) modestly declines from a one-month high reached earlier this Thursday as it finds it difficult to achieve positive acceptance above the $2,700 barrier. The United States dollar (USD) is recovering from a one-week low that reached on Wednesday thanks to growing consensus that the Federal Reserve (Fed) will halt its rate-cutting cycle later this month. This, together with the general attitude of taking risks, seems to be one of the main things that acts as a barrier for The precious metal that is safe.
The XAUUSD capped by the risk-on sentiment and the appearance of some USD dip-buying.
The Fed might not rule out further rate cuts by the end of this year, though, given indications that inflationary pressures in the US are decreasing. As a result, US Treasury bond yields fell overnight, potentially capping the USD and bolstering the price of non-yielding gold. Furthermore, before the US macro data, the commodity’s fall should be limited by the uncertainty surrounding Trump’s tariff plan and its possible effects on global economy.
Daily market Update: Gold price bulls become apprehensive with a bullish risk outlook and the rise of USD dip-buying.
Earlier this week, Bloomberg reported that the economic advisers to incoming US President Donald Trump are contemplating a plan to raise tariffs incrementally, month by month.
Additionally, lower-than-expected inflation figures from the US rekindled hopes that the cycle of policy easing by the Federal Reserve, which supports the price of gold, may not be finished yet.
According to the US Bureau of Labor Statistics (BLS), the headline CPI increased by 0.4% in December, and the annual rate increased from 2.7% to 2.9%.
In contrast, the core gauge—which does not include volatile food and energy prices—rose 3.2% annually, beating consensus predictions and the 3.3% gain in November.
The markets responded quickly, and they now anticipate that the Fed will reduce interest rates by 40 basis points (bps) by year’s end, as opposed to roughly 31 bps prior to the December inflation report.
The benchmark 10-year U.S. government bond’s yield declined further from the from the US rekindled hopes that the cycle of policy easing by the Federal Reserve, which support the price of gold, may not be finish yet.
US Bureau of Labor Statistics (BLS), the headline CPI increased by 0.4% in December.
According to the US Bureau of Labor Statistics (BLS), the headline CPI increased by 0.4% in December, and the annual rate increased from 2.7% to 2.9%.
In contrast, the core gauge—which does not include volatile food and energy prices—rose 3.2% annually, beating consensus predictions and the 3.3% gain in November.
The markets responded quickly, and they now anticipate that the Fed will reduce interest rates by 40 basis points (bps) by year’s end, as opposed to roughly 31 bps prior to the December inflation report.
The benchmark 10-year U.S. government bond’s yield declined further from the After 15 months of conflict, Israel and Hamas agreed to a ceasefire in Gaza and to swap Israeli hostages for Palestinian detainees.
For a new boost later in the North American session, traders now turn to the US economic docket, which includes monthly Retail Sales and the customary Weekly Initial Jobless Claims.
