Gold remains bid as lack of Fed clarity and geopolitical frictions persist
Gold (XAU/USD) advances modestly on Friday as traders seem to book profits ahead of the weekend, yet clings to gains of over 0.51% after reaching a seven-week high of $4,353. At the time of writing, XAU/USD trades at $4,302 as traders digest comments from Federal Reserve (Fed) officials.
Bullion trims gains ahead of the weekend, but remains supported by Fed uncertainty, weak data
The US economic docket was light, yet Federal Reserve officials crossed the wires. Two of the three dissenters expressed concerns about inflation remaining too high, specifically amid a period of scarce economic data, particularly the Consumer Price Index (CPI), which would indicate the pace of price increases.
Last Thursday, a weaker-than-expected jobless claims report justified the central bank’s decision as the number of Americans filing for unemployment benefits rose. However, as the Fed Chair Jerome Powell stated, most data could be “distorted” due to the US government closure.
In the meantime, Russia-Ukraine peace talks seem to have stalled. The White House press secretary expressed that US President Trump is frustrated with the pace of talks and disappointed with Ukraine’s President Volodymyr Zelenskiy, who has not signed off on the peace plan made by the US.
Source : Fxstreet.com
