Gold Price Forecast: Softer-than-expected ECI adds evidence of abating inflation, supporting XAU/USD – TDS
|Economists at TD Securities analyze Gold (XAU/USD) outlook after the release of softer-than-expected Employment Cost Index (ECI).
Soft landing theme places a cap on optimism for Gold for the time being
A softer-than-expected ECI adds to evidence that inflation pressures continue to abate. Ultimately, the US disinflation theme remains a key driver of the weakness in the broad US Dollar, amid a low vol environment, elusive signs of a global recession and with a Fed likely on hold. These pressures are supportive of Gold prices, as highlighted by largely neutral price action despite an additional hike in the history book.
Still, the data continue to lend strength to the soft landing theme, which places a cap on optimism for the yellow metal for the time being.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.