The price of gold rose on Wednesday after U.S. retail sales data boosted expectations that the Federal Reserve will cut interest rates this year.
Spot gold GOLD It rose 0.1%, to $2,331.17 an ounce, around 0318 GMT. US gold futures 
GOLD They fell 0.1%, to $2,345.60.
Data released on Tuesday showed that US retail sales barely rose in May, suggesting that economic activity remained lackluster in the second quarter.
“Weakness in Treasury yields the day before and moderation in moves around the dollar following the disappointing US retail sales reading appear to offer room for some relief in the yellow metal,” said Yeap Jun Rong. , market strategist at IG.
“Although US monetary policymakers have forecast a single rate cut through 2024, market rate expectations are leaning towards a more pessimistic stance, which appears to be confirmed by the pockets of economic weakness that have emerged. Further economic weakness could boost gold prices.”
Lower interest rates reduce the opportunity cost of holding non-yielding bullion. (FEDWATCH)
The latest data shows a moderation in the labor market and price pressures, so the Federal Reserve is seeking further confirmation that inflation is cooling.
Market attention now turns to Thursday’s weekly jobless claims data and Friday’s leading purchasing managers’ indexes.
The price of gold has entered a consolidation phase after reaching an all-time high of $2,449.89 on May 20.
On June 7, data showed that China’s central bank paused gold purchases for its reserves in May after 18 months of purchases, sending the bullion to its biggest daily drop since November 2020.
“Central bank gold buying took a breather in May and any continuation of this trend poses a risk to the pace of bullish momentum in the gold price,” said Tim Waterer, chief market analyst at KCM Trade. in a note.
Cash money 
XAGUSD1! fell 0.1%, to $29.49 per ounce, platinum 
PL1! rose 0.1% to $973.86, and palladium 
XPDUSD1! it gained 0.2%, to $888.91.
