Gold steadies above $2,300 as US Dollar falls back with core PCE Inflation in focus
The post Gold steadies above $2,300 as US Dollar falls back with core PCE Inflation in focus appeared on BitcoinEthereumNews.com.
Gold price rebounds from $2,315 as US Dollar comes under pressure on Monday. Investors see the Fed reducing interest rates twice this year. The US economic outlook improved as preliminary PMI expanded at a faster pace in June. Gold price (XAU/USD) attracts bids near $2,315 in Monday’s American session as the US Dollar (USD) corrects amid firm speculation that the Federal Reserve (Fed) will deliver two rate cuts this year. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, drops to 105.60. Expectations for the Fed to reduce interest rates twice in 2024 strengthened amid easing inflationary pressures in the United States (US). The US Consumer Price Index (CPI) report showed that price pressures decelerated more than expected in May. Also, the preliminary S&P Global Purchasing Managers Indes (PMI) report for June showed signs of moderate cooling in cost growth. “Selling price inflation cooled to a five-month low in June. The rate of increase nevertheless fell to a five-month low in the services sector, where the rise was among the lowest seen over the past four years, and a six-month low in manufacturing,” the report said. The CME FedWatch tool suggests that the central bank will start the policy-easing campaign at the September meeting and deliver subsequent rate cuts in November or December. The 30-day Federal Funds futures pricing data indicate that the probability of a rate cut in September is 66%. In the early New York session, Chicago Fed Bank President Austan Goolsbee said a slowdown in inflation would open the door for policy-easing. Goolsbee said he is optimistic about further improvement in inflation data and hopes the Fed will gain more confidence in inflation heading back to 2%. However, the Gold price could come under pressure as US bond yields have rebounded. Fed policymakers expect that interest rates will…
Filed under: News - @ June 24, 2024 9:24 pm