- Gold price drifts higher in Monday’s Asian session.
- Optimism over US trade deals bolstered bets for earlier Fed rate cuts, supporting the Gold price.
- Traders brace for the Fedspeak later on Monday for a fresh impetus.
The Gold price (XAU/USD) recovers some lost ground during Asian trading hours on Monday. Rising bets that the US Federal Reserve (Fed) will cut rates more times this year and possibly sooner than previously expected might undermine the Greenback and support the USD-denominated commodity price as a weaker USD makes Gold cheaper for foreign buyers.
Nonetheless, improved risk sentiment due to the US-China trade agreement, along with the ceasefire deal between Israel and Iran could diminish bullion’s appeal as a traditional safe-haven asset. Traders brace for the Fedspeak later on Monday. The Atlanta Fed President Raphael Bostic and Chicago Fed President Austan Goolsbee are scheduled to speak.
Daily Digest Market Movers: Gold price gains momentum on increased optimism of a Fed rate cut
- “The slowdown in geopolitics has offered an opportunity for investors to start taking profit because of the forward-looking prospects of some kind of kinetic war with China and the developments in the Middle East,” said Daniel Pavilonis, senior market strategist at RJO Futures.
- Top US President Donald Trump advisers said on Friday that agreements with as many as a dozen of the US’s largest trading partners are expected to be completed by the July 9 deadline, per Bloomberg.
- US Personal Spending unexpectedly fell by 0.1% in May, the second decline this year, according to the US Bureau of Economic Analysis on Friday. Meanwhile, US Personal income dropped by 0.4% in May, the largest decrease since September 2021.
- The US Personal Consumption Expenditures (PCE) Price Index rose by 2.3% YoY in May, compared to 2.2% in April (revised from 2.1%), the US Bureau of Economic Analysis reported on Friday. This reading came in line with market expectations.
- The core PCE Price Index, which excludes volatile food and energy prices, climbed 2.7% in May, following the 2.6% increase (revised from 2.5%) seen in April. On a monthly basis, the PCE Price Index and the core PCE Price Index increased 0.1% and 0.2%, respectively.
Gold price retains a bullish tone in the longer term
The Gold price trades in positive
