- The US dollar weakened after the consumer inflation data.
- The DXY falls 0.4%, pulling back from two-week highs.
- The XAU/USD pair reached its highest level in three days.
The prices of Gold They register this Friday their best day in weeks, driven by the general fall of the US dollar. The pair XAU/USD it jumped from around $1,905 to $1,920 after the release of the US Personal Consumption Core Price Index.
Consumer inflation figures fell slightly more than expected, pulling back US yields and boosting stocks and commodity prices. The US Core CPI fell to 4.6% YoY in May from 4.7%, while the general index fell to 3.8% from 4.6%.
These figures softened the expectations of the Federal Reserve’s rate hike for the next meeting. Attention now turns to next week’s US labor market data, which includes the ADP, jobless claims (Thursday) and the Nonfarm Payrolls report (Friday).
XAU/USD rebound
The XAU/USD pair is around $1,915, up less than $10, but enough to make it the best day in weeks. The rally came after hitting a low on Thursday at $1,892, the lowest level in three months.
To the upside, XAU/USD is breaking a short-term downtrend line. The next resistance zone is at $1,920. On the downside, a drop below $1,905 would weaken near-term prospects for the yellow metal.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
