Gold Prices React to Economic Indicators Amid Central Bank...
Gold prices were initially pressured by a stronger U.S. dollar and higher Treasury yields due to interest-rate hikes by the Federal Reserve and European Central Bank earlier in the week.
However, on Friday, the yellow metal found relief as futures prices rebounded from the $1,940-per-ounce mark, settling at $1,960. This occurred after the U.S. inflation rate showed a slight 0.2% easing in June compared to the 0.3% increase in May.
While core inflation decreased to 4.1% in the last 12 months, a significant drop from May's 4.6% increase, it still remained well above the Fed's 2% target.
In other economic news, consumer spending in the U.S. rose 0.5% in June, signaling confidence in the economy as inflation continued to ease and the economy maintained growth.
Earlier, the Bank of Japan's decision to loosen its grip on yields of Japanese government bonds caused shock waves in international bond markets, driving the yield on the 10-year JGB to its highest level since 2014.
The U.S. dollar traded lower, with the ICE U.S. Dollar Index, a measure of its strength, falling 0.1% to 101.65, while the Japanese yen strengthened to 140.96 against the dollar.
Despite gold's recent increase, analysts view it as a potential signal for further price climbs. However, expectations of higher international bond yields could potentially limit the yellow metal's price performance.
GOLD
SELL LIMIT 1959 - 1961🕯🕯
✅ TP1: 1954
✅ TP2: 1949
✅ TP2: 1944
❌ SL: 1965
However, on Friday, the yellow metal found relief as futures prices rebounded from the $1,940-per-ounce mark, settling at $1,960. This occurred after the U.S. inflation rate showed a slight 0.2% easing in June compared to the 0.3% increase in May.
While core inflation decreased to 4.1% in the last 12 months, a significant drop from May's 4.6% increase, it still remained well above the Fed's 2% target.
In other economic news, consumer spending in the U.S. rose 0.5% in June, signaling confidence in the economy as inflation continued to ease and the economy maintained growth.
Earlier, the Bank of Japan's decision to loosen its grip on yields of Japanese government bonds caused shock waves in international bond markets, driving the yield on the 10-year JGB to its highest level since 2014.
The U.S. dollar traded lower, with the ICE U.S. Dollar Index, a measure of its strength, falling 0.1% to 101.65, while the Japanese yen strengthened to 140.96 against the dollar.
Despite gold's recent increase, analysts view it as a potential signal for further price climbs. However, expectations of higher international bond yields could potentially limit the yellow metal's price performance.
GOLD
SELL LIMIT 1959 - 1961🕯🕯 ✅ TP1: 1954
✅ TP2: 1949
✅ TP2: 1944
❌ SL: 1965
