GOLD Faces Selling Pressure Amid Bearish Sentiment
The Gold price (XAU/USD) has experienced selling pressure following a tentative recovery, reaching levels near $1,934.74 during the London session. The precious metal has retreated as the Federal Reserve's (Fed) interest rate decision, which was perceived as neutral, failed to instill confidence. Fed Chair Jerome Powell's confirmation of forthcoming interest rate hikes reflects the ongoing struggle against persistent inflation.
In Europe, S&P500 futures have extended their losses, reflecting lingering concerns about a potential recession in the United States. Market sentiment remains cautious, with the Fed emphasizing the persistence of core inflation and tight labor market conditions. Moreover, Powell has reiterated that there will be no rate cuts by the year-end, adding to the overall bearish sentiment.
The US Dollar Index (DXY) has dipped to approximately 103.15 after encountering strong resistance around 103.40. The USD Index is likely to consolidate as investors eagerly await the release of the monthly Retail Sales data.
Preliminary reports suggest that the economic data could show a contraction of 0.1% compared to the previous month's expansion of 0.4% recorded in April. Given the significant decline in food and gasoline prices, a thorough analysis of the Retail Sales report is necessary to determine whether the contraction in retail demand is attributed to lower prices of essential goods or if it signals a weakening economy.
In Europe, S&P500 futures have extended their losses, reflecting lingering concerns about a potential recession in the United States. Market sentiment remains cautious, with the Fed emphasizing the persistence of core inflation and tight labor market conditions. Moreover, Powell has reiterated that there will be no rate cuts by the year-end, adding to the overall bearish sentiment.
The US Dollar Index (DXY) has dipped to approximately 103.15 after encountering strong resistance around 103.40. The USD Index is likely to consolidate as investors eagerly await the release of the monthly Retail Sales data.
Preliminary reports suggest that the economic data could show a contraction of 0.1% compared to the previous month's expansion of 0.4% recorded in April. Given the significant decline in food and gasoline prices, a thorough analysis of the Retail Sales report is necessary to determine whether the contraction in retail demand is attributed to lower prices of essential goods or if it signals a weakening economy.
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