Gold Holds Steady as US Inflation Data Affects Fed Expectations

Gold remained steady at $1,960 per ounce on Thursday following a gain of over 1% in the previous session. The dollar experienced a significant decline due to lower-than-anticipated US inflation figures, leading to reduced expectations regarding the Federal Reserve's future hawkishness in upcoming meetings.

In June, the US annual inflation rate decelerated to 3%, falling short of market projections of 3.1%. Additionally, the core inflation rate continued its downward trend, reaching 4.8%.

Although the Fed is still expected to raise rates by 25 basis points this month, traders have scaled back their expectations of further rate hikes throughout the year.

Investors are now eagerly awaiting US producer inflation data on Thursday to gain further insights into the future trajectory of interest rates.

XAUUSD BUY LIMIT 1934 - 1936 💯💯

✅ TP1: 1941
✅ TP2: 1946
✅ TP3: 1951

🛑 SL: 1929