Gold price is demonstrating back-and-forth moves around $1,960.00 despite a steep fall in the USD Index.
Soft US inflation and PPI June report indicate that households’ demand has turned subdued.
Fed Waller is confident that two more interest rate hikes are appropriate this year to bring down inflation to 2%.
Gold price (XAU/USD) is demonstrating a non-directional performance from Thursday after a stalwart rally to near $1,960.00. The precious metal has failed to capitalize on soft inflation and Producer Price Index (PPI) June report, which cleared that households’ demand has turned subdued and the path towards the 2% inflation target is intact.
In spite of a heavy decline in the US Dollar Index (DXY), Gold price is struggling to come out of the woods. The US Dollar Index has surrendered the psychological cushion of 100.00 and has dropped to o near 99.65. Rising hopes of only one interest rate hike announcement from the Federal Reserve (Fed) by the year-end have sent the USD Index extremely lower.
Contrary to investors’ expectations, Fed Governor Christopher Waller is confident that two more interest rate hikes are appropriate this year to bring down inflation to 2%. Hawkish commentary from Fed Waller has infused some strength in the US Treasury yields. The yields offered on 10-year US Treasury bonds have jumped to near 3.77%.
