⛏Gold Futures
GOLD
▲ PositiveMonetaryrelevance
Weaker dollar and lower bond yields from benign inflation data support gold prices.
Impact on assets 1
Others
The dollar index fell 0.17% on Thursday as a stock rally reduced liquidity demand for the greenback and benign inflation data eased pressure on the Federal Reserve to tighten policy. The May core PCE price index, the Fed’s preferred inflation gauge, rose 3.4% year-over-year, matching expectations. Limiting the dollar’s losses, US economic data showed strength: Q1 GDP was revised up to 2.1% annualized, weekly jobless claims fell to 215,000, and personal spending and income both rose 0.7% month-over-month. The euro edged up 0.13% against the dollar, while the yen was nearly flat after touching a 39-year low, with Japanese authorities signaling readiness for bold currency intervention. Gold futures settled 0.97% higher, supported by the weaker dollar and lower bond yields.
Weaker dollar and lower bond yields from benign inflation data support gold prices.