On Thursday, the price of gold (XAU/USD) gained momentum fueled by a decline in the US Dollar (USD). The latest Consumer Price Index (CPI) report for April indicated a slowdown in inflation in the US, leading market participants to increase their expectations for Federal Reserve (Fed) rate cuts later this year. A potential decrease in interest rates could benefit gold, as it reduces the cost of borrowing for investing in the precious metal.
Gold traders are closely monitoring several key economic indicators on Thursday, including US Building Permits, Housing Starts, weekly Initial Jobless Claims, the Philly Fed Manufacturing Index, and Industrial Production. Additionally, Fed officials Barr, Harker, Mester, and Bostic are scheduled to speak, with market attention focused on any hawkish comments that could bolster the US Dollar (USD) and limit the upside potential for gold in the near term.
The movement in gold prices reflects ongoing market sentiment driven by macroeconomic data and central bank policy outlooks. Investors remain attentive to developments impacting the US Dollar and gold as they assess the broader economic landscape and the potential implications for precious metal markets.
