XAU/USD gains 0.77% as traders await Fed projections amid higher-than-expected US inflation and retail sales data.
Gold prices climbed 0.77% to $4,358 as investors awaited the Federal Reserve’s first meeting led by Kevin Warsh, with markets pricing in steady rates but monitoring hawkish signals. The XAU/USD pair rebounded from daily lows of $4,317 amid speculation over potential shifts in Fed policy.
Recent US economic data, including higher-than-expected CPI and PPI prints and a 0.9% rise in May Retail Sales, suggested inflationary pressures persist. Gas station sales surged 3.4% due to elevated gasoline prices linked to Iran tensions, reinforcing consumer resilience.
Traders currently assign a 20% probability of a Fed rate hike by late 2026, while US Treasury yields held steady at 4.432%. The US Dollar Index (DXY) posted marginal gains of 0.01% ahead of the Fed’s decision and updated economic projections.