Gold futures are up almost 1.3% today as 10-year US Treasury yields fell to 4.21%, the lowest level since April 1, 2024. Loretta Mester, president of The Cleveland Federal Reserve reported today that it would be inappropriate not to cut rates in the US until inflation reaches the 2% target and that “it is important not to wait too long to cut rates.” Amid those dovish comments and falling prices for US exports and imports, Treasury yields fell today. Furthermore, the latest US CPI and PPI data indicated that inflation continues to decline. What’s more, preliminary sentiment data from the University of Michigan today indicated that American consumers are more cautious and do not feel as good as the market expected about current economic conditions, while the expectations index also fell. In the end, Wall Street sees greater chances of faster Fed rate cuts and while this stance may not be as good for the economy because the cost of it will be seen in lower retail sales, weak market data labor and declining consumer readings. Consequently, in gold futures we can see some bullish reaction, which erased the sell-off reactions of the last sessions, when gold reacted with falls to the rise in US bond yields and the US dollar.
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