Yellow metal prices soared the past 24 hours, but Gold lost most of its upside progress during the Wall Street trading session. XAUUSD primarily benefit from a falling US Dollar in the aftermath of last week’s disappointing non-farm payrolls report. But risk aversion reversed this trend as the haven-linked US Dollar recovered some of its lost ground.
The slowing in gold seemed to occur in the outcome of the Federal Reserve’s inflation expectations survey. The report showed that price growth estimates for one year out were anchored at 3.36% in April versus 3.24% prior. That was the highest outcome since September 2013. Consumers also anticipate the price of gasoline, food and rent to climb 9.18%, 5.79% and 9.49% respectively.
Today, all eyes are on Fed speeches in the remaining 24 hours. Presidents of the New York, San Francisco, Atlanta, and Philadelphia branches are due to speak. If they continue to tone down near-term rising CPI expectations, it could cool global equity markets, pressuring bond rates and the US Dollar. Such an outcome could end up being well for gold.
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