Gold traded sideways due to the uncertainties surrounding the Federal Reserve’s future interest rate decisions.
Key US inflation data from May indicated a slowdown, supporting expectations that the Fed might implement rate cuts twice this year.
However, opposition from several influential FOMC members remains.
Market participants are now focusing on manufacturing sector data from the US later today. If manufacturing continues to contract, gold could benefit and appreciate further.
At the same time, political uncertainty in the US and Europe could continue to support gold. The recent debate between President Joe Biden and his Republican opponent, Donald Trump, increased political uncertainty and could support demand for gold.
Additionally, the French parliamentary elections have added to the uncertainty about the far-right party’s potential to steer French policies and could affect gold prices as investors look forward to the second round of votes.
