Anna 
Gold prices saw a sharp increase late in the North American session on Friday, rising by over 1% despite US Treasury bond yields remaining elevated. The XAU/USD pair traded at $2,369 after rebounding from daily lows of $2,343. This surge in gold prices was fueled by a University of Michigan (UoM) survey revealing heightened pessimism among Americans about the economy, with Consumer Sentiment plunging to its lowest level in six months.
The gloomy outlook painted by Friday’s sentiment data, coupled with weaker labor market figures since the beginning of May, has prompted market participants to seek safety in both gold and the US Dollar.
In the realm of monetary policy, Federal Reserve officials provided varied perspectives. Atlanta Fed President Raphael Bostic maintained a hawkish stance, indicating that the Fed is anticipating only one rate cut in 2024. Conversely, Fed Governor Michelle Bowman emphasized the need for policy to remain “steady” and expressed no inclination towards rate cuts this year. Dallas Fed’s Lorie Logan dismissed the notion of interest rate reductions altogether.
Minneapolis Fed President Neel Kashkari adopted a “wait and see” approach towards future monetary policy decisions.
Looking ahead, the upcoming week’s US economic calendar will feature critical releases including inflation figures, retail sales data, building permits, and additional speeches from Federal Reserve officials. These events will likely shape market sentiments and impact the trajectory of gold prices amid ongoing economic uncertainties and evolving monetary policy signals.
