Gold Edges Lower as Dollar Rebounds: Key News and Trends

Gold (XAU/USD) has dipped to around  $2,912/ounce, falling nearly 10 from its intraday high of $2,918 reached earlier in the session. The recovery of the U.S. Dollar is seen as the primary pressure point causing gold to retreat from its daily peak.

Key Data and News Highlights

The U.S. Labor Department reported that the economy added 151,000 jobs in February, slightly below the 160,000 jobs expected by economists surveyed by Reuters. The unemployment rate stood at 4.1%, compared to the anticipated 4%.

Federal Reserve Chair Jerome Powell stated early Friday that the Fed will take a cautious approach to easing monetary policy, adding that the economy "remains in good shape."

While gold is a hedge against inflation, rising interest rates can diminish its appeal as it does not yield interest.

Markets are currently pricing in expectations for the Fed to begin cutting rates starting in June, with a total of 76 basis points in rate cuts anticipated for the remainder of the year.

Market Focus

Attention is now turning to the upcoming Federal Reserve meeting. Additionally, inflation reports and retail sales data will provide further guidance for broader market trends, particularly for the gold market.

Gold's slight decline reflects the interplay between a stronger Dollar and shifting expectations around monetary policy, with investors closely monitoring economic indicators for future direction.

Source: BestSC

Trans: Infofinance.com