Gold Price retreated ahead of the weekend amid renewed dollar strength. Next week's European Central Bank (ECB) and US inflation report could ramp up XAUUSD volatility, FXStreet’s Eren Sengezer reports.
Gold Price eyes ECB meeting, US CPI as next catalysts
“The ECB is widely expected to hike its policy rate by 25 bps in July. In case the ECB reveals a hawkish rate outlook, XAUEUR could come under heavy bearish pressure and cause XAUUSD to edge lower as well. Nevertheless, the dollar’s market valuation would also be impacted in a negative way in that scenario and help gold limit its losses.”
“Next Friday, the BLS will release the May inflation data. On a yearly basis, the Consumer Price Index (CPI) is forecast to edge lower to 8.2% from 8.3% in April. The market reaction to the inflation data should be pretty straightforward with a lower than expected CPI print weighing on US T-bond yields and providing a boost to XAUUSD and vice versa.”
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