Advertisements
Home Gold News Gold Extends Gains Amid Geopolitical Tensions and Economic Data Focus

Gold Extends Gains Amid Geopolitical Tensions and Economic Data Focus

by anna

During early Asian trading hours on Monday, the price of gold (XAU/USD) continued its upward movement, nearing $2,360, driven by rising geopolitical tensions in the Middle East that have spurred safe-haven flows into precious metals.

Investor focus remains on key economic data releases later in the week, including the US Consumer Price Index (CPI), Producer Price Index (PPI), and Retail Sales, which are expected to provide insights into the economic outlook and inflation trajectory.

Advertisements

Last week, several US Federal Reserve (Fed) officials delivered hawkish messages, with Atlanta Fed President Raphael Bostic indicating that rate cuts in 2024 were unlikely given elevated inflation levels earlier in the year, while Minneapolis Fed President Neel Kashkari adopted a cautious “wait and see” approach to future monetary policy decisions.

Advertisements

In May, US consumer sentiment plummeted to a six-month low due to persistent inflationary pressures. The preliminary University of Michigan’s Consumer Sentiment Index fell to 67.4 from April’s final reading of 77.2, well below the market consensus of 76.0. Meanwhile, expectations for a slight easing in the US CPI inflation rate for April from 3.5% to 3.4% year-over-year might curb hopes for rate cuts, potentially leading to downward pressure on the gold price.

Advertisements

Simultaneously, the Israeli military announced operations in northern Gaza, with ongoing “precise operations” reported in various locations. These military engagements precede a potential full-scale invasion, as reported by CNN. The persistent geopolitical tensions in the Middle East are likely to buoy the prices of precious metals, given their traditional status as safe-haven assets.

Advertisements
Advertisements

You may also like

Lriko logo

Lriko is a gold portal website, the main columns include gold pricespot goldsilver pricespot silvergold futures, nonfarm payroll, gold basics, gold industry news, etc.

© 2023 Copyright  lriko.com