From Investing.com: 2024-03-28 04:59:00

Gold prices continued to rise as safe-haven assets remained strong amid global uncertainties. Central banks continue to purchase gold as a way to diversify their reserves, offsetting weakness in investment demand. Despite declining expectations of a Fed rate cut in June, the gold price remains high due to geopolitical instability and inflation concerns. However, XAU/USD may move sideways with a slight bullish bias until the US PCE report is released on Friday. Potential impact on gold prices includes US GDP and Jobless Claims reports today, as well as the revised Consumer Sentiment Index later on.

The euro remained unchanged as EUR/USD approached a key support level amid bearish pressure. The ECB is expected to pursue a more dovish monetary policy than the Federal Reserve, leading to a slight bearish sentiment. However, shifting interest rate expectations between the two central banks could influence the pair in the short term. Yesterday’s data showing sticky US inflation and higher-than-expected inflation figures from Spain impacted EUR/USD. Focus today will be on US GDP and Jobless Claims reports, with potential volatility in the pair based on the outcomes.

The Canadian dollar initially strengthened but later stumbled after hawkish Fed remarks led to a US dollar rally. Fed Governor Waller’s comments decreased the likelihood of rate cuts, supporting the USD. However, ongoing concerns about global oil supply and geopolitical tensions supported CAD. Despite this, Capital Economics anticipates a weakening CAD against the USD due to expanding interest rate differentials and deteriorating trade terms for Canada. Important events to watch today include Canada’s GDP report and various US economic data releases, pointing to short-term trends for USD/CAD.



Read more at Investing.com: Gold Continues to Rise Ahead of US PCE Report; Euro Remains Under Bearish Pressure