Gold futures gains today almost 1.3% as US 10-year treasury yields dropped to 4.21% the lowest level since 1 April 2024. Loretta Mester, chair of the Cleveland Fed informed today that it would be inappropriate to not cut rates in US until inflation reach 2% goal and that 'it's important not to wait too long to cut rates'. Amid those, dovish comments and falling export and import US prices, treasury yields dropped today. Also, last CPI and PPI data from the US signalled, that inflation is still falling. What's more, today prelim University of Michigan sentiments data indicated that US consumers are more cautious and feel not as good as market expected about current economy conditions, while expectation index also dropped. In the end, Wall Street sees higher chances for faster Fed rate cuts and while this stance may be not so good for the economy, because the cost of it will be seen in lower retail sales, weak job market data and falling consumers readings. In the effect, in gold futures we can see some bullish reaction, which erased sell-off reactions from the last few sessions, when gold reacted with declines to higher US bond yields and US dollar.
GOLD (H1 interval)
Source: xStation5
GOLD (M5 interval)
Source: xStation5
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