Gold prices rose slightly on Monday, hitting $2,326.63 per ounce, as U.S. Treasury yields eased, making non-yielding bullion more appealing. The increase in spot gold by 0.27% and U.S. gold futures by 0.35% were attributed to the upcoming U.S. economic data, particularly the Personal Consumption Expenditures (PCE) price index set to be released on Friday. Analysts believe that the PCE data could impact the Federal Reserve’s interest rate decisions, leading to fluctuations in the gold market.
In currency markets, the Japanese yen approached a 34-year low against the dollar, reaching 159.94, following the Bank of Japan’s decision to delay bond-buying stimulus reduction. On the other hand, the euro rose by 0.39% to $1.0733, despite political uncertainty surrounding the French election. The British pound also experienced fluctuations in response to broader dollar strength and political factors.
Traders are closely monitoring the upcoming economic data, especially the U.S. PCE price index, which is expected to show a slowing annual growth of 2.6% in May. Any deviation from this forecast could impact market sentiment and strengthen bets on a rate cut by September. Additionally, Federal Reserve officials are scheduled to provide further guidance on monetary policy throughout the week.
The forecast suggests that the dollar will maintain its strength, driven by favorable economic data and geopolitical uncertainties. Traders are advised to pay close attention to the PCE data and Fed commentary for potential shifts in monetary policy that could influence the dollar’s direction in the coming days.
