Gold (XAU/USD) holds above the $4,000 mark on Friday as the US Dollar (USD) softens following the latest US Personal Consumption Expenditures (PCE) inflation report, which broadly met forecasts and reduced expectations of a near-term Federal Reserve (Fed) interest rate hike.
TD Securities’ Head of Commodity Strategy Bart Melek highlights that Gold recently broke below $4,000/oz as higher US rates and a firmer Dollar weigh on the metal.
OCBC’s FX strategists Sim Moh Siong and Christopher Wong note Gold is tentatively stabilising after a sharp selloff, with prices back above USD4,000 and some dip-buying interest emerging as Dollar and real yield pressures ease.
Gold (XAU/USD) edged higher to start the week before turning south and plunging to its lowest level since November, below $4,000. Although the precious metal managed to find a foothold, it struggled to stage a decisive rebound and ended the week deep in negative territory.
Gold price (XAU/USD) trades 0.6% higher to near $4,050 during the European trading session on Friday. The precious metal recovers after discovering support near $3,960 in the past two trading days.
Commerzbank analysts highlight a weakening Gold market, with prices briefly slipping below USD 4,000 per troy ounce before recovering.
Societe Generale’s team highlights a sharp reversal in Gold, with prices down 20% year-to-date and over 11% this month, undermining the Dollar debasement narrative.
Gold (XAU/USD) struggles to build on its intraday bounce of around $50 from the $3,983-$3982 region and flat lines below the $4,050 level during the first half of the European session on Friday.
ING strategists Warren Patterson and Ewa Manthey observe that Gold stabilized after dropping below the $4,000/oz mark earlier in the week, supported by lower US Treasury yields following softer US inflation data.
Gold prices fell in India on Friday, according to data compiled by FXStreet.
Gold price (XAU/USD) declines to around $4,020 during the early Asian session on Friday. The precious metal extends the decline as traders have ramped up bets of a US rate hike. The Michigan Consumer Sentiment Index report is due later on Friday.
Gold (XAU/USD) price recovers on Thursday, up by almost 1% as the Greenback drops despite inflation data suggesting that a ‘higher-for-longer' scenario favors the Federal Reserve (Fed) holding rates steady, despite US President Donald Trump’s desires for lower interest rates.
