|

Gold Price Forecast: XAUUSD to tick down on ECB hawkishness next week

Gold Price retreated ahead of the weekend amid renewed dollar strength. Next week's European Central Bank (ECB) and US inflation report could ramp up XAUUSD volatility, FXStreet’s Eren Sengezer reports. 

Gold Price eyes ECB meeting, US CPI as next catalysts

“The ECB is widely expected to hike its policy rate by 25 bps in July. In case the ECB reveals a hawkish rate outlook, XAUEUR could come under heavy bearish pressure and cause XAUUSD to edge lower as well. Nevertheless, the dollar’s market valuation would also be impacted in a negative way in that scenario and help gold limit its losses.”

“Next Friday, the BLS will release the May inflation data. On a yearly basis, the Consumer Price Index (CPI) is forecast to edge lower to 8.2% from 8.3% in April. The market reaction to the inflation data should be pretty straightforward with a lower than expected CPI print weighing on US T-bond yields and providing a boost to XAUUSD and vice versa.”

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Editor's Picks

AUD/USD bounces back toward 0.6950 on fresh USD supply

AUD/USD bounces back toward 0.6950 in the Asian session on Friday. The US Dollar retreats from 17-month highs as traders take profits off the table ahead of the all-important US Nonfarm Payrolls report. Meanwhile, the Australian Dollar draws support from reviving expectations of a November interest rate hike amid elevated global yields and inflation risks.


USD/JPY struggles near 158.00 as USD retreats ahead of NFP

USD/JPY is struggling for fresh impetus near 158.00, moving away from the top end of its weekly range in the Asian session on Friday, after hotter-than-expected Tokyo CPI and amid a broad US Dollar retreat. Traders reposition themselves ahead of US Nonfarm Payrolls.

Gold fades the earlier optimism; back below $4,200

Gold could not sustain the post-NFP bull run past the $4,200 mark per troy ounce, receding toward the $4,180 region at the end of the week. The precious metal’s inconclusive price action comes amid fresh selling pressure hurting the US Dollar as investors assess the latest NFP data.

Crypto Today: Bitcoin, Ethereum and XRP gains reinforce bullish outlook

Cryptocurrency prices are broadly recovering on Friday, led by Bitcoin moving above $86,000. Ethereum has reaffirmed its bullish outlook, rising above $2,700 while the immediate area at $2,800 caps upside. Meanwhile, Ripple hovers near $1.54.

Week ahead – Fed minutes in the spotlight amid bond market rout

Energy crisis and soaring bond yields to stay in driver’s seat in quiet week. Fed minutes eyed after drop in October rate hike bets. ISM services PMI and Treasury auctions to be watched too. Canadian employment, Japanese wages and ECB minutes also on tap.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.