XAUUSD : Gold retreated slightly waiting for US inflation data

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Gold prices fell on Tuesday (June 25), affected by the rise in the USD and bond yields, as investors waited for US inflation data expected to be released later this week, which has could provide additional signals about when to lower interest rates by the US Federal Reserve (Fed) this year.

At the end of the trading session on June 25, the spot gold contract fell 0.4% to 2,323.60 USD/oz. Gold futures contracts lost 0.4% to 2,335.80 USD/oz.

The USD advanced 0.2%, making gold more expensive for holders of other currencies, while 10-year US Government bond yields also increased.

“There is still a lot of physical gold demand from central banks and Asian demand… eventually expect the Fed to lower interest rates and Investors are very reluctant to short gold.”

According to the World Gold Council (WGC), gold-traded ETFs saw capital inflows reaching $212 million last week, equivalent to 2.1 tons.

Gold reached a record high of 2,449.89 USD/oz on May 20 and is up 12% year to date, supported by hopes of a Fed rate cut and strong buying activity by central banks in the coming months. context of geopolitical tensions.
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