US retail sales were weaker than expected
Updated
The world price of XAU reversed to increase slightly when the latest report showed that US retail sales were weaker than expected.
Specifically, according to the Statistics Department of the US Department of Commerce, the country's retail sales increased by 0.1% in May. Previously, economists had forecast an increase of 0.3%.
Disappointing economic data has reinforced hopes that the US Federal Reserve (FED) will reduce interest rates this year, putting pressure on the dollar and US Treasury yields.
According to the CME FedWatch tool, traders are currently pricing in about a 67% chance that the Fed will cut interest rates in September. Lower interest rates will benefit gold because it reduces the opportunity cost of holding Precious metals do not carry this interest.
Specifically, according to the Statistics Department of the US Department of Commerce, the country's retail sales increased by 0.1% in May. Previously, economists had forecast an increase of 0.3%.
Disappointing economic data has reinforced hopes that the US Federal Reserve (FED) will reduce interest rates this year, putting pressure on the dollar and US Treasury yields.
According to the CME FedWatch tool, traders are currently pricing in about a 67% chance that the Fed will cut interest rates in September. Lower interest rates will benefit gold because it reduces the opportunity cost of holding Precious metals do not carry this interest.
Note
💵XAUUSD SELL 2332-2334 💵✔️ TP 2326
✔️ TP 2321
❌ SL 2340
Related publications
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.