Commodities
Gold Prices Firm Above $4,380 as US Dollar Weakness Persists
The price of Gold (XAU/USD) has remained above $4,380 despite marginal losses on Thursday. The metal met resistance at the $4,450 area but continues to hold its ground.
According to economists at DBS Group Research, the moderate US Consumer Price Index (CPI) figures released on Wednesday have increased pressure on front-end US Treasury yields and the US Dollar. This has underpinned demand for precious metals like Gold.
The Federal Reserve's policy outlook is facing a marked reassessment due to America's weakened fiscal position, which erodes the yield advantage of US bonds supporting the USD. This suggests that fiscal concerns are increasingly weighing on the Dollar's traditional rate and yield appeal.