Gold prices fell to a one-week low as USD strengthened due to declining rate cut expectations.

From Investing.com: 2024-06-27 06:17:00

Gold prices fell by 0.91% to reach a one-week low as the USD strengthened on declining rate cut expectations by the Fed. A stronger dollar and rising bond yields contributed to the drop, with the possibility of an interest rate cut by the Fed diminishing. The USD is in focus on data releases today, such as GDP, jobless claims, and durable goods orders, which could impact the gold price. The US presidential debate is also anticipated to influence the markets.

The Euro declined by 0.32% following worse-than-expected German consumer confidence data, weighing on the struggling currency. Market focus is on France’s snap election and US economic reports. Investors are confident in the US economy, reducing rate cut expectations by the Fed.

The British pound dropped by 0.5% as the US dollar surged despite weak home sales data. GBP faces uncertainty due to upcoming UK elections and economic concerns, with expectations of a rate cut by the Bank of England. GBP/USD may experience volatility as the BOE Governor delivers a speech, while US economic reports could impact the pair’s movement.



Read more at Investing.com: Gold Falls to 1-Week Low; Euro Struggles on Weak German Consumer Data