Gold dragged lower on hawkish central banks as PMI data eyed

Gold Price renewed three-month low after five-day losing streak. It looks pressured on the hawkishness adopted recently by central banks. This hawkish stance amplifies economic fears and underpin the American currency’s demand, weighing on the Gold Index.

Mostly upbeat US data, positive statements by Fed Chair Jerome Powell also bolstered USD and favoured the sellers of the precious metal. Preliminary readings of PMIs for June are awaited to get insight and additional directions on gold price action as it approaches $1,900 support confluence.

Gold Price declines in the last five consecutive days as bears prod the lowest levels in three months amid hawkish central bank actions, as well as the mixed US data. The Bank of England surprised markets by lifting benchmark rates by 50 basis points (bps) to 5% versus major expectations favoring a 0.25% rate hike.

Further, the Swiss National Bank (SNB) matched market forecasts while announcing 25 basis points increase in its benchmark interest rate, to 1.75%. This was the fifth consecutive rate lift from the Swiss central bank. Additionally, the Central Bank of the Republic of Türkiye (CBRT) hiked rates for the first time since August 2021 whereas the Norway’s central bank announced rate increases.