A Strong US CPI Dents Gold’s Rally
The US CPI for June came in better than expected, overshadowing the Fed rate cut sentiments and reducing gold's safe haven appeal.
During Thursday’s US session, gold’s sudden rally ended and its prices slipped, giving back the gains of the previous day. The US CPI for June came in better than expected, overshadowing the Fed rate cut sentiments and reducing gold’s safe haven appeal.
However, GOLD continues to hold above the $1,400 level, and is now trading at $1,400 at the time of writing. Earlier on Thursday, the precious metal had soared up to $1,426, a one-week high.
However, despite the strong CPI print, the weakness in the US dollar continues even on Friday. Weak factory activity and inflation as well as the trade war continue to weigh on the US economy, according to Fed Chair Powell, and these reasons are the main drivers for Fed’s decision to step in with rate cuts soon.
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