Gold price makes minor gains as stickier inflation prompts the Federal Reserve to tighten. Gold price registers minimal gains, as traders brace for the weekend, gains 0.16%% after data from the United States (US) showed that inflation remains at high levels, justifying the need for further tightening by the US Federal Reserve. After hitting a daily low of 1976.31, the Gold Index is trading around $1991.00, up 0.20%.<\/p>\n\n\n\n
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US equities continued to climb. A report by the US Department of Commerce showed inflation in the United States had decelerated, with the Personal Consumption Expenditure (PCE) rate slowing from 5.1% to 4.2% in YoY readings.<\/p>\n\n\n\n
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The monthly growth rate increased to 0.1%, below the prior month\u2019s 0.3%. Despite this deceleration, the Fed\u2019s preferred gauge for inflation, the core PCE, remained unchanged at 4.6% YoY, suggesting that inflationary pressures remain stickier than estimates. As a result, investors continued to believe that the Fed would raise rates.<\/p>\n\n\n\n
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Gold prices remained supported by falling US Treasury bond yields. As of writing, the 2-year Treasury bond yield drops 3.5 bps and yields 4.039%, while the 10-year benchmark note rate sits at 3.443% and collapses 8 bps.<\/p>\n\n\n\n
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In other data, the University of Michigan (UoM) Consumer Sentiment remained unchanged at 63.5, with inflation expectations for 1-year standing at 4.6% and a 5-year horizon at 3%. <\/p>\n\n\n\n
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During the week, Gold Index faltered to break below\/above the $1970-$2010 range, hovering on each side of the 20-day Exponential Moving Average (EMA) at $1989.35. Although the latter was broken four times weekly, the EMA turned flat, suggesting that sideways trading will continue in the XAU\/USD.<\/p>\n\n\n\n
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If the Gold Index reclaims $2000, further upside is expected, and a challenge to March\u2019s 20 high at $2009.75 in on the cards. A breach of it will expose the YTD high at $2048.79. Conversely, the Gold Index first support would be $1970. A decisive break will expose the 50-day EMA at $1953.34.<\/p>\n","protected":false},"excerpt":{"rendered":"
Gold price makes minor gains as stickier inflation prompts the Federal Reserve to tighten. Gold price registers minimal gains, as traders brace for the weekend, gains 0.16%% after data from the United States (US) showed that inflation remains at high levels, justifying the need for further tightening by the US Federal Reserve. After hitting a …<\/p>\n","protected":false},"author":13,"featured_media":81236,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,37,36],"tags":[7014,6885,6874],"class_list":["post-83426","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-forex-markets","category-market-updates","tag-consumer-sentiment","tag-fed","tag-gold"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/83426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=83426"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/83426\/revisions"}],"predecessor-version":[{"id":83427,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/83426\/revisions\/83427"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/81236"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=83426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=83426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=83426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}