In the mid-North American session on Thursday, gold prices experienced a decline, slipping below $2,390, influenced by the recovery of US Treasury yields which bolstered the Greenback. While Wednesday’s inflation report in the United States fueled a rally in the precious metal, Thursday’s data presented a mixed picture, prompting some profit-taking activities ahead of the weekend.
The XAU/USD pair is currently trading at $2,381, marking a decrease of 0.24%. The ongoing buoyancy in Wall Street, with the market hovering around or near record highs, has diminished the demand for safe-haven assets like gold. Moreover, US economic data remains a key driver of gold prices, with the latest figures revealing a higher-than-expected number of Americans filing for unemployment benefits, albeit lower than the previous reading.
Additionally, data indicated a sharp decline in construction permits, while Housing Starts for April showed an increase compared to March but fell short of forecasts. Furthermore, the May Philadelphia Fed Manufacturing Index registered a decline from 15.5 to 4, below initial expectations, while Industrial Production for April remained stagnant.
Amidst these developments, Richmond Fed President Thomas Barkin acknowledged a decline in inflation but emphasized that achieving the Fed’s target would require more time. Cleveland Fed President Loretta Mester expressed satisfaction with the latest Consumer Price Index (CPI) data, affirming that the current monetary policy stance remains appropriate as the Fed continues to monitor forthcoming economic indicators.
