In the latest North American trading session, gold prices saw a notable uptick, fueled by escalating geopolitical tensions involving Iran and Israel. Additionally, remarks from Federal Reserve (Fed) officials, characterized by a hawkish tone, spurred a surge in US Treasury yields, consequently bolstering the strength of the Greenback.
XAU/USD is currently trading at $2,384, marking a gain of over 1% following a daily low of $2,361. Amidst this market activity, the spotlight has shifted towards key central bank speakers, overshadowing the release of economic data from the United States, which had painted an optimistic picture of the labor market.
During Thursday’s session, several Fed policymakers conveyed their views. Raphael Bostic, from the Atlanta Fed, highlighted concerns over elevated inflation levels, affirming that the central bank still has significant ground to cover in addressing this issue. Bostic emphasized the unlikelihood of rate reductions in the near term. Meanwhile, New York Fed President John Williams stressed the Fed’s data-driven approach, expressing satisfaction with the current state of monetary policy. Williams indicated a reluctance to rush into rate cuts, citing a favorable baseline scenario that does not involve rate hikes but leaving room for adjustments if necessary.
In response to Bostic’s remarks and bolstered by robust economic data showing that US Initial Jobless Claims remained unchanged compared to previous figures, gold prices continued their upward trajectory.
