In the latest North American session, the dollar exhibited signs of weakness, with traders awaiting the release of the US Consumer Price Index (CPI) data for February. Forecasts suggest stability in headline figures while anticipating a slowdown in core data, potentially influencing the US Dollar and supporting XAU/USD. As of the current update, Gold is trading nearly unchanged at $2,180.60.
Last week saw Gold reaching an all-time high of $2,195.15, narrowly missing the $2,200 mark after US Federal Reserve (Fed) Chair Jerome Powell’s congressional testimony. Powell acknowledged decreasing inflation, hinting at potential future policy easing. However, he stressed that any decisions would hinge on data-driven assessments, indicating a cautious approach without immediate interest rate cuts.
Gold’s minimal movement coincides with a broader trend of the dollar’s decline, losing 18 points in the BBDXY index since last Tuesday. The euro is strengthening in the 1.09 handle, contributing to the overall health of various currencies, including the ruble and yen.
Meanwhile, Gold and Silver have responded positively to the dollar’s challenges. Last Thursday, Gold traded at $2,131, rising to $2,178 by Friday’s close. Silver also experienced gains, moving from $23.83 on Thursday morning to $24.26 by Friday’s close.
Short positions are facing losses, signaling a positive trend. However, concerns arise about potential attempts by short paper traders to engineer a market downturn, a pattern observed in the past.
Oil prices remain range-bound around $77-$78, and despite Powell’s recent statements impacting bond markets, bonds are being bought, with the 10-year yield dropping to 4.08%.
The US Data Cupboard, although empty today, will feature the Consumer Price Index (CPI) for February tomorrow. As markets await these economic indicators, the dollar’s recent struggles and Gold’s resilience suggest ongoing shifts in the economic landscape.
