Dollar's Recovery Sinks Gold Prices

The US Dollar (USD) trimmed its earlier losses on Thursday, causing Gold to slip in value. The XAU/USD pair traded at $4,365, down 1%, after reaching a daily high of $4,449.

Economic data from the US showed that the disinflation process continues, with moderately softening jobs market. The Producer Price Index (PPI) cooled to 4.7% YoY from 5.5% previously.

Federal Reserve officials remained divided on whether to raise interest rates or hold steady. Cleveland Fed Beth Hammack advocated for a rate increase to curb growth and inflation, while Richmond Fed President Thomas Barkin expressed uncertainty about the need for a hike to meet inflation targets.