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Gold fell 0.28% following Fed Chair Jerome Powell’s remarks at the ECB forum in Portugal.
Powell stated that he is cautiously optimistic on disinflation and emphasizes the need for more progress before rate cuts. US Treasury yields remain firm, while the US Dollar fluctuates in familiar range. The XAU/USD trades at $2,324, down 0.28%.
Powell also commented that the disinflation process has resumed but expressed a desire for further progress before cutting interest rates.
US jobs data revealed that job vacancies rose above estimates, demonstrating the robustness of the labour market amid high interest rates set by the Fed.
Further data is expected on Wednesday, including the release of the Federal Open Market Committee’s last Meeting Minutes and Services PMIs from S&P Global and the Institute for Supply Management (ISM). Data will resume on Friday as US markets are closed on Thursday due to Independence Day.
The US Bureau of Labour Statistics released May Job Openings and Labor Turnover reports, showing 8.14 million job vacancies, exceeding forecasts and April’s 7.919 million, the lowest level in three years. US business activity in the manufacturing sector showed mixed results, and traders are now focusing on the upcoming release of service sector data on Wednesday.
According to the CME FedWatch Tool, odds for a 25-basis-point Fed rate cut in September are at 63%, up from 58% on Monday. A December 2024 fed funds rate futures contract implies that the Fed will ease policy by just 36 basis points toward the end of the year. Gold price fluctuates near the Head-and-Shoulders neckline around $2,320-$2,350, with momentum turning neutral and a stalemate between buyers and sellers.
