Gold price is trading with a small bullish tilt.
The gold price (XAUUSD) rose moderately on Friday, supported by a weaker US dollar (USD) and lower US rates. Following the recent dismal US GDP figures, traders increase their wagers that the Federal Reserve (Fed) will decrease interest rates this year. Furthermore, geopolitical threats and conflicts in the Middle East may enhance the precious metal. Which is viewed as a classic safe-haven asset.
Investors will look for fresh indications from the US April PCE inflation data, which is coming on Friday.
Later on Friday, gold traders will watch on the US April Core Personal Consumption Expenditures Price Index (Core PCE). The Fed’s favored inflation indicator. The Core PCE number is expected to rise 0.3% month on month and 2.8% year on year in April. In the event of higher-than-expected inflation figures. The US dollar may receive some support while the gold price’s upside potential is limited.
Daily Market Movers: Gold prices climb amid geopolitical uncertainties and a weaker US GDP.
Israel now has effective control of Gaza’s entire land border after seizing control of a buffer zone along the Egyptian border. According to the Guardian.
The second estimate of US Gross Domestic Product (GDP) shows the economy expanded at an annualized rate In Q1. The pace increased to 1.3% from 1.6% in the previous quarter, meeting market expectations.
The US weekly initial jobless claims for the week ending May 25 increased to 219K from 216K the previous week. Exceeding the market consensus of 218K.
On Thursday, Chicago Fed President Austan Goolsbee stated that housing inflation continues to be a major impediment to price growth. And that the US labor market remains robust.
Atlanta Fed President Raphael Bostic suggested that central bankers are unlikely to decrease interest rates in July. Citing indicators that inflationary pressures have moderated.
According to CNBC, New York Fed President John Williams believes inflation will begin to slow later this year, despite the fact that it remains too high.
