Gold Prices Remain Steady Amid Awaited U.S. Economic Data
Gold prices have remained stable in recent weeks after a sharp drop last month due to concerns about a potential escalation in the Middle East conflict. Today, XAU/USD held its position as investors anticipated U.S. economic data for clues about possible interest rate cuts from the Federal Reserve. A modest rise in the U.S. dollar limited gold’s gains.
Recent Gold Price Trends Gold traded mostly flat at $2,312.61 per ounce today, while U.S. gold futures for June delivery settled down by 0.1% at $2,322.3 per ounce.
The dollar gained 0.1% on the back of renewed expectations for rate cuts this year, making gold less attractive for holders of foreign currencies.
“Markets are likely awaiting a catalyst for additional gains, but downside risk seems limited due to constrained participation from money managers,” noted a commodity strategist at TD Securities.
Boston Federal Reserve President Susan Collins expressed confidence that current monetary policy will sufficiently slow the economy to bring inflation back to the Fed’s 2% target.
Investors are now focused on the University of Michigan’s consumer sentiment reading on Friday and remarks from several Fed officials this week. U.S. consumer price index data is scheduled for release on May 15.
Recent weaker U.S. jobs data has prompted money markets to price in two potential Fed rate cuts this year, along with about 40 basis points of monetary easing.
Last week, gold prices saw a second consecutive weekly decline, settling just above the $2,300 mark after market volatility following the Fed’s midweek policy announcement and the U.S. employment report.
