- Gold price attempt to recover from the recent losses after moderate US data.
- The pullback in US Treasury yields put pressure on the US Dollar.
- US Core PCE is due on Friday, expected to reduce from 4.2% to 3.9%.
Gold price snaps a four-day losing streak, trading higher around $1,870 per troy ounce during the Asian session on Friday. The prices of the precious metal recovers from the lowest levels since March, primarily supported by a correction in the US Dollar (USD) due to the moderate economic data from the United States (US).
Additionally, the pullback in US Treasury yields might have helped the non-yielding assets like Gold. However, the yield on the 10-year US Treasury bond retraces the recent losses, standing at 4.59% at the time of writing.
US GDP remained consistent at 2.1% as expected. Initial Jobless Claims for the week ending on September 22, printed a lower reading of 204K than the market consensus of 215K, which was 202K prior.
US Pending Home Sales showed a decline of 7.1%, exceeding the market expectation of a 0.8% fall, swinging from the 0.9% rise previously.
The US Dollar Index (DXY) extended losses on the second day after the moderate datasets from the United States (US), trading around 106.00 by the press time.
The US Dollar (USD) saw a strong rally over the past week, buoyed by robust economic indicators, and it climbed to its highest levels since December. Furthermore, the USD's resilience can be linked to the favorable performance of US Treasury yields.
Chicago Fed President Austan Goolsbee expressed confidence that the Fed will bring inflation back to its target. Goolsbee also emphasized the unique chance to achieve this without a recession, indicating the US Federal Reserve’s (Fed) commitment to managing inflation while sustaining economic growth.
Federal Reserve Bank of Richmond President, Thomas Barkin acknowledged that recent inflation data has been positive but emphasized that it's premature to determine the future course of monetary policy.
Traders await the US Core Personal Consumption Expenditure (PCE) Price Index, the Fed's preferred measure of consumer inflation, which is due on Friday. The annual rate is expected to reduce from 4.2% to 3.9%.
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