Gold (XAU) Daily Forecast: Price Holds at $2,310, What to Expect Before Weekend?

Despite softer consumer price index (CPI) data initially weakening the dollar, traders shifted back to the dollar following the Fed’s projections.

The Producer Price Index (PPI) for May rose by 2.2% year-on-year, slightly below expectations, further supporting the dollar.

Geopolitical and Economic Factors

Geopolitical tensions in the Middle East and political uncertainty in Europe, such as the snap election in France, continue to provide some support to gold prices.

These factors, combined with signs of easing inflationary pressures in the U.S., have led markets to price in a possible rate cut by the Fed as early as September. This has kept U.S. Treasury yields low, lending some support to gold.

Data-Driven Market Dynamics

The U.S. Bureau of Labor Statistics reported unchanged consumer prices in May, with the yearly rate decreasing to 3.3% from 3.4% in April. The annual core PPI rose 2.3%, below market expectations.

Additionally, initial unemployment claims increased to 242,000 last week, up from 229,000. These data points, along with the upcoming Michigan US Consumer Sentiment Index, will continue to influence USD price dynamics and short-term trading opportunities for gold.

Short-Term Forecast

Gold (XAU/USD) remains under pressure around $2,310 due to the Federal Reserve’s hawkish outlook. Key support levels at $2,298 and $2,287 could be tested if downward momentum persists.