Gold Prices Rise as Dollar Weakens and Investors Await US ....
Updated
On Wednesday, gold prices saw a slight increase as the U.S. dollar weakened and bond yields retreated, with investors eagerly awaiting U.S. inflation data to gain insights into the Federal Reserve's stance on interest rate hikes.
At 0053 GMT, spot gold (GOLD) rose by 0.2% to reach $1,935.39 per ounce. Similarly, U.S. gold futures (GOLD) also experienced a 0.2% gain, reaching $1,940.40.
The depreciation of the dollar index (DXY) by 0.2% to its lowest level since May 11 made gold more affordable for holders of other currencies. Additionally, the benchmark 10-year U.S. Treasury yields (US10Y) slipped to their lowest point in nearly a week.
Although a few members of the Federal Reserve hinted on Monday that the central bank was close to concluding its tightening of monetary policies, John Williams, the President of the Federal Reserve Bank of New York, reaffirmed on Tuesday that the central bank was not yet finished raising its short-term rate target.
Investors are now eagerly awaiting June's inflation data, which is scheduled for release at 1230 GMT. According to economists surveyed by Reuters, the consumer price index is expected to have increased by 3.1% following May's 4% surge. However, core rates are predicted to have declined to 5% from 5.3%.
CME's Fedwatch tool suggests that there is a 92% probability of the Federal Reserve raising rates by 25 basis points at their upcoming policy meeting on July 25-26.
Gold serves as a safe investment during periods of political and financial uncertainty, but higher interest rates elevate the opportunity cost of holding non-yielding bullion.
Data revealed on Wednesday that Japan's wholesale inflation decelerated for the sixth consecutive month in June due to declining fuel and commodity prices.
In the precious metals market, spot silver (XAGUSD1!) rose by 0.4% to reach $23.18 per ounce, platinum (PL1!) also witnessed a 0.4% increase, reaching $927.63, while palladium (XPDUSD1!) experienced a 0.1% decline, reaching $1,250.10.
XAUUSD SELL 1940 - 1942 💯💯
✅ TP1: 1935
✅ TP2: 1930
✅ TP3: 1925
🛑 SL: 1946
At 0053 GMT, spot gold (GOLD) rose by 0.2% to reach $1,935.39 per ounce. Similarly, U.S. gold futures (GOLD) also experienced a 0.2% gain, reaching $1,940.40.
The depreciation of the dollar index (DXY) by 0.2% to its lowest level since May 11 made gold more affordable for holders of other currencies. Additionally, the benchmark 10-year U.S. Treasury yields (US10Y) slipped to their lowest point in nearly a week.
Although a few members of the Federal Reserve hinted on Monday that the central bank was close to concluding its tightening of monetary policies, John Williams, the President of the Federal Reserve Bank of New York, reaffirmed on Tuesday that the central bank was not yet finished raising its short-term rate target.
Investors are now eagerly awaiting June's inflation data, which is scheduled for release at 1230 GMT. According to economists surveyed by Reuters, the consumer price index is expected to have increased by 3.1% following May's 4% surge. However, core rates are predicted to have declined to 5% from 5.3%.
CME's Fedwatch tool suggests that there is a 92% probability of the Federal Reserve raising rates by 25 basis points at their upcoming policy meeting on July 25-26.
Gold serves as a safe investment during periods of political and financial uncertainty, but higher interest rates elevate the opportunity cost of holding non-yielding bullion.
Data revealed on Wednesday that Japan's wholesale inflation decelerated for the sixth consecutive month in June due to declining fuel and commodity prices.
In the precious metals market, spot silver (XAGUSD1!) rose by 0.4% to reach $23.18 per ounce, platinum (PL1!) also witnessed a 0.4% increase, reaching $927.63, while palladium (XPDUSD1!) experienced a 0.1% decline, reaching $1,250.10.
XAUUSD SELL 1940 - 1942 💯💯 ✅ TP1: 1935
✅ TP2: 1930
✅ TP3: 1925
🛑 SL: 1946
Note
Dollar dips as traders await US inflation dataNote
Running . +25pips ✅ ✅Note
Running . +40pips ✅ ✅Note
HIT TP1 .+60pips ✅ ✅Note
Gold is on the right trackNote
Gold SideWay
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