XAU/USD falls for a third session as traders await key inflation data influencing Fed rate expectations.
Gold (XAU/USD) extended losses during Thursday’s Asian session, retreating to levels last seen in November 2025. The decline marks a third consecutive day of bearish momentum as markets brace for the US Personal Consumption Expenditures (PCE) Price Index, a critical gauge of inflation that will shape Federal Reserve policy decisions.
Recent easing in inflation concerns, driven by a sharp drop in crude oil prices following the reopening of the Strait of Hormuz and a temporary sanctions waiver on Iranian oil, has reduced bets on further Fed rate hikes. Despite this, the CME Group’s FedWatch Tool shows over 80% odds of a rate increase by year-end, limiting significant USD weakness.
Lower US Treasury yields have failed to support gold, while a broader tech stock selloff has weighed on investor sentiment. The safe-haven dollar remains resilient, further pressuring the non-yielding metal.