During the late North American session, gold prices experienced a modest uptick, registering gains of approximately 0.15%. This marginal increase comes against the backdrop of elevated US Treasury bond yields, rendering the non-yielding metal less attractive to investors. Consequently, the strengthening of the Greenback countered gold’s rally, with the XAU/USD trading at $2,357, reflecting a 0.28% increase from its opening price.
Meanwhile, Wall Street saw declines, accompanied by a sharp rise in the 10-year Treasury note yield, reaching its highest level since the onset of May. This surge in real yields, typically inversely correlated with gold prices, acted as a restraint on the precious metal’s upward momentum.
Adding to market dynamics, Federal Reserve (Fed) officials delivered a hawkish message, contributing to heightened market uncertainty. Additionally, despite an improvement in the Conference Board (CB) Consumer Confidence for May, concerns regarding a potential economic downturn have resurfaced.
Looking ahead, traders are gearing up for the anticipated release of April’s Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred gauge of inflation. Expectations hover around a 2.8% year-on-year increase for the core figure, while the headline PCE is anticipated to rise by 0.3% month-on-month.
