Gold holds steady as slowing inflation bolsters expectations of Fed rate cuts
US inflation data showed that the personal consumption expenditures index increased 2.6% after advancing 2.7% in April. May inflation readings were in line with economists’ expectations. Gold (Symbol: XAUUSD) rose to $2,327.12 per ounce. Prices jumped more than 4% in the second quarter.
The latest U.S. inflation data came in line with consensus and did little to sway current market rate expectations for the Fed’s easing process to kickstart in September. Read more to find out how interest rate affects gold price.
Disclaimer:
If Fed Chair Powell’s comments align with market expectations, gold prices could maintain their current levels or even inch higher. However, any unexpected hawkish signals could lead to a short-term dip. Risk management is advised for day traders.
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