Gold price fell during Monday’s Asian session.
On Monday, during the Asian session, the gold price (XAUUSD) lost impetus in its recovery. The Federal Reserve’s (Fed) hawkish views, Combined with Mounting concern. That the Fed may delay its easing plans, have lifted the Greenback and driven USD denominated gold lower. However, signals of economic weakness and persistent Geopolitical tensions in the Middle East are expected to boost precious metals in the short term.
Fed officials Jefferson and Mester are scheduled to speak later on Monday.
Gold speculators will pay close attention to the Fed’s Jefferson and Mester statements on Monday. Later this week The US Consumer Price Index (CPI), Producer Price Index (PPI). And Retail Sales will all be under the spotlight. Stronger-than-expected economic statistics may reduce the prospect for a Fed rate drop. Exerting some selling pressure on the XAUUSD pair.
Daily Market Movers: Gold price draws some selling with the Fed’s aggressive rhetoric.
Mary Daly, President of the San Francisco Fed, emphasized the importance of a long-term restrictive policy to meet the Fed’s inflation targets.
Despite the uncertain forecast, Atlanta Fed President Raphael Bostic said the central bank will most likely continue to decrease interest rates this year.
Dallas Fed President Lorie Logan stated that there are upside risks to inflation and. That it is too early to lower interest rates.
Minneapolis Fed President Neel Kashkari remarked. That he is in a “wait-and-see mode,” with a “high” threshold to finding that higher interest rates are required to reduce inflation.
Israeli military said it initiated operations in northern Gaza overnight.
The Israeli military said it initiated operations in northern Gaza overnight and that “precise operations” are still underway in eastern Rafah and near the Rafah border. As well as in the Zeitoun neighborhood in central Gaza. According to CNN, the military action in Rafah takes place before a full-scale invasion.
The initial reading of the Michigan Consumer Sentiment Index fell to 67.4 in May from 77.2 in April, below the forecast of 76.0.
The University of Michigan’s (UoM) one-year inflation forecast rose to 3.5%. While the five-year forecast increased to 3.1%. Both figures reached their greatest level since November 2023.
