Fed not raising interest rates - Gold benefits
During the last week, downbeat prints of the US activity numbers for May joined disappointing employment clues to weigh on the US Dollar, despite looming economic fears. That said, the latest United States Initial Jobless Claims jumped to the highest levels since September 2021 whereas the US ISM Services PMI, S&P Global PMIs and Factory Orders also printed softer outcomes for May and pushed back the Fed hawks, which in turn weighed the US Dollar and propelled the Gold Price.
That said, US Dollar Index (DXY) dropped in the last two consecutive weeks to 103.56 at the latest, grinding near the bottom.
With this, market players placed higher bets on the US Federal Reserve’s no rate change decision in its June 13-14 policy meeting. That said, the CMEGroup's Fed watch tool suggests around 72% chance of the Fed rate being unchanged to the 5%-5.25% range.
However, Tuesday’s US Consumer Price Index (CPI) data appears crucial for May appears crucial to determine the Fed decision as the United States central bank has always shown readiness to tame inflation with a “whatever it takes” attitude. “US May CPI data will be published just ahead of the FOMC decision and that is adding some uncertainty to the immediate call – a strong core print could force the FOMC’s hand. The median market estimate expects that core inflation rose 0.4% m/m with the headline rate rising 0.2% owing to weaker energy costs,” said Analysts at the ANZ.
Hence, the Gold price remains on the bull’s radar amid the Federal Reserve (Fed) concerns but the cautious mood ahead of this week’s key US data, monetary policy meetings challenges the Gold buyers.
Moving on, monetary policy meeting decisions from the Fed, ECB, and BoJ, as well as key data from the US on inflation and retail sales, and employment numbers from Australia and the UK, will be in the spotlight to offer a volatile week to the Gold traders ahead.
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That said, US Dollar Index (DXY) dropped in the last two consecutive weeks to 103.56 at the latest, grinding near the bottom.
With this, market players placed higher bets on the US Federal Reserve’s no rate change decision in its June 13-14 policy meeting. That said, the CMEGroup's Fed watch tool suggests around 72% chance of the Fed rate being unchanged to the 5%-5.25% range.
However, Tuesday’s US Consumer Price Index (CPI) data appears crucial for May appears crucial to determine the Fed decision as the United States central bank has always shown readiness to tame inflation with a “whatever it takes” attitude. “US May CPI data will be published just ahead of the FOMC decision and that is adding some uncertainty to the immediate call – a strong core print could force the FOMC’s hand. The median market estimate expects that core inflation rose 0.4% m/m with the headline rate rising 0.2% owing to weaker energy costs,” said Analysts at the ANZ.
Hence, the Gold price remains on the bull’s radar amid the Federal Reserve (Fed) concerns but the cautious mood ahead of this week’s key US data, monetary policy meetings challenges the Gold buyers.
Moving on, monetary policy meeting decisions from the Fed, ECB, and BoJ, as well as key data from the US on inflation and retail sales, and employment numbers from Australia and the UK, will be in the spotlight to offer a volatile week to the Gold traders ahead.
𝖷𝖠𝖴𝖴𝖲𝖣 BUY 1955 - 1957 💯💯
✅𝖳𝖯1 1960
✅𝖳𝖯2 1965
✅TP3 1970
🛑𝖲𝖫 1948
𝖷𝖠𝖴𝖴𝖲𝖣 SELL 1968 - 1970 💯💯
✅𝖳𝖯1 1965
✅𝖳𝖯2 1960
✅TP3 1955
🛑𝖲𝖫 1975
Comment:
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