Gold price corrects slightly after refreshing a new all-time high at $2,265 ahead of US data-packed week.
Jerome Powell sees the pace of decline in February’s core PCE inflation aligned with the Fed’s required rate.
Investors await the US ISM Manufacturing PMI for fresh guidance on the US Dollar’s next move.
Gold price (XAU/USD) trades close to a fresh all-time high of around $2,260 ahead of a busy week in the United States’ economic calendar. The precious metal clings to gains as expectations for the Federal Reserve (Fed) lean towards June as the meeting to cut interest rates have increased. Fed Chair Jerome Powell validated the decline in February’s core Personal Consumption Expenditures inflation (PCE) data as the Fed looks for evidence of price pressures easing to the 2% target.
Higher expectations for the Fed to cut rates, especially after a two-year period of rate hikes, dent yields on interest-bearing assets such as US bonds. However, this increases the investment value of Gold. 10-year US Treasury yields were slightly up in Monday’s European session but have come down to 4.20%.
The US Dollar Index (DXY), which tracks the value of the US Dollar against six major currencies, consolidates around 104.50. The upside in the US Dollar remains capped due to firm Fed rate cut expectations, while uncertainty ahead of the release of the United States Nonfarm Payrolls (NFP) report and related labor data is limiting the downside.
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