XAU/USD rises to $4,386 after weaker US inflation and retail sales data lower expectations for a September Fed rate increase.
Gold prices surged nearly 0.90% on Friday, driven by a broad weakening of the US Dollar as softer economic data reduced bets on a Federal Reserve rate hike. XAU/USD reached $4,386, though it remains below the $4,400 mark.
The US Dollar Index (DXY) fell 0.4% to 99.57, reflecting investor sentiment that July’s easing inflation and declining retail sales dimmed prospects for tighter monetary policy. Retail Sales dropped 0.6% in July, missing estimates, while consumer sentiment hit a preliminary August low of 51.0.
Disinflation trends, rising jobless claims, and subdued retail activity contributed to the Dollar’s decline, providing support for bullion. Market focus now shifts to the Fed’s September meeting amid mixed economic signals.