Gold refreshes weekly top amid the global flight to safety, weaker USD
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Gold price rises on safe-haven demand amid trade uncertainties and rising geopolitical tensions. A softer US CPI lifts Fed rate cut bets and weighs on the USD, further supporting the commodity. Traders now look to the US economic releases for some meaningful impetus later this Thursday. Gold price (XAU/USD) attracts some follow-through buyers for the second straight day and climbs to a one-week high, around the $3,377-3,378 region during the Asian session on Thursday. US President Donald Trump’s fresh tariff threat offset a positive outcome from the high-stakes US-China trade talks. This, along with rising geopolitical tensions in the Middle East, tempers investors’ appetite for riskier assets and drives safe-haven flows toward the bullion. Apart from this, the prevalent US Dollar (USD) selling bias is seen as another factor supporting the commodity. Data released on Wednesday showed that US consumer prices rose at a slower-than-anticipated pace in May, reaffirming market bets that the Federal Reserve (Fed) will resume its rate-cutting cycle in September. The dovish outlook, along with the global flight to safety, leads to a further decline in the US Treasury bond yields, which drags the USD to the monthly low and benefits the non-yielding Gold price. Traders now look forward to the US macro data for some impetus, though the fundamental backdrop seems tilted in favor of the XAU/USD bulls. Daily Digest Market Movers: Gold price is underpinned by a combination of supporting factors US President Donald Trump flared up trade tensions on Wednesday, saying that he would set unilateral tariff rates and inform trading partners within two weeks. This adds a layer of uncertainty and overshadows the optimism led by a positive tone following US-China trade talks in London. The US ordered some staff to depart its Baghdad embassy and allowed military families to voluntarily leave the…
Filed under: News - @ June 12, 2025 5:29 am