Gold prices on the rise amid US dollar weakness
Gold prices on the rise amid US dollar weakness
On Thursday, gold prices resumed their growth amid the decline in the US dollar. In addition, a slightly softer tone in the equity markets is seen as another factor providing some support to the precious metal.
The US Dollar Index (DXY), which tracks the greenback against a basket of global currencies, fell 0.20% to 105.6. At the same time, the yield on the 10-year US Treasury note fell 0.21% to 4.645.
However, gold's upside potential is limited by expectations that the Federal Reserve (Fed) will delay the start of its cycle of interest rate cuts.
The XAU/USD pair was up 0.42% at 2,325.90 over the past 24 hours, while June US gold futures were down 0.03% at $2,337.80.
All traders' attention is now focused on key US macroeconomic data, such as the preliminary first quarter GDP report and the Personal Consumption Expenditure (PCE) price index.
The US GDP report will be released on Thursday. The world's largest economy is expected to have grown at an annualized rate of 2.5% in the first quarter.
Growing investor appetite for risky assets amid easing concerns over further escalation of geopolitical tensions in the Middle East is another factor putting pressure on the safe-haven precious metal.
The Bank of Japan's two-day policy meeting began today, with markets expecting the central bank to keep its key interest rate unchanged despite the yen's continued plunge.
Read more: Yen continues to fall ahead of Bank of Japan rate decision
