During the North American session, Gold prices saw a decline as market participants analyzed Federal Reserve (Fed) Chair Jerome Powell’s remarks at an ECB forum in Portugal. Powell adopted a slightly dovish tone, despite firm US Treasury yields and fluctuating levels of the Greenback, leading XAU/USD to trade at $2,324, marking a 0.28% decrease.
Powell acknowledged that the disinflationary trend has resumed but emphasized the need for further progress before considering interest rate cuts, citing the strength of the US economy and labor market. He underscored the Fed’s commitment to managing dual mandate risks amidst evolving economic conditions.
US jobs data revealed a surprising increase in job vacancies, highlighting the robustness of the labor market against the backdrop of the Fed’s current interest rate range of 5.25%-5.50%.
Looking ahead, market attention shifts to upcoming data releases. Wednesday will feature the Federal Open Market Committee’s (FOMC) Meeting Minutes alongside Services PMIs from S&P Global and the Institute for Supply Management (ISM). US markets will be closed on Thursday for Independence Day, with Friday’s focus turning to June’s Nonfarm Payrolls (NFP) report.
