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Gold prices fell on Thursday, retreating within their recent consolidation range as the US dollar strengthened and Treasury yields rose across the curve.
Gold also retreated after some volatility yesterday, following a partial resolution of political uncertainty surrounding the Federal Reserve, after President Trump denied plans to remove Chair Jerome Powell, reducing fears over central bank independence.
From a macroeconomic perspective, the latest inflation data continue to point to persistent price pressures.
While wholesale inflation (PPI) remained flat in June, the earlier CPI reading showed renewed upward pressure. Fed officials have also maintained a cautious tone, suggesting rate cuts could be unlikely in the short term. This could reinforce expectations of a prolonged pause in interest rates, weighing on non-yielding assets like gold.
However, gold could find support as geopolitical tensions remain. Additionally, uncertainty over trade deals persists, which could drive demand for safe-haven assets.
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