XAU surges despite positive news for DXY
The drop in jobless claims suggests the US economy is recovering well, which further strengthens the case for a lower-than-expected interest rate cut by the Federal Reserve in September.
The precious metal, which has been under pressure from the sell-off earlier this week, was further weighed down by the latest inflation report, which dampened market optimism about a September monetary policy pivot.
The US consumer price index (CPI) rose 0.2% in July, compared to a 2.9% increase in the same month last year, according to the US Department of Labor's Bureau of Labor Statistics.
Tai Wong, an independent metals trader in New York, said that a September rate cut was a certainty. However, the latest data disappointed the market by reinforcing the case for a 25 basis point cut, instead of the expected 50 basis points.
The precious metal, which has been under pressure from the sell-off earlier this week, was further weighed down by the latest inflation report, which dampened market optimism about a September monetary policy pivot.
The US consumer price index (CPI) rose 0.2% in July, compared to a 2.9% increase in the same month last year, according to the US Department of Labor's Bureau of Labor Statistics.
Tai Wong, an independent metals trader in New York, said that a September rate cut was a certainty. However, the latest data disappointed the market by reinforcing the case for a 25 basis point cut, instead of the expected 50 basis points.
Note
SELL XAU 2453
TP1: 2447
TP2: 2440
SL: 2461
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.