Gold’s Squeeze‑and‑Roll: Why the Metal Fell a Few Pips
Gold slipped early Wednesday, trading around $2,329, after Federal Reserve Chair‑in‑Chief Jerome Powell dropped a few breezy hints at the European Central Bank Forum in Portugal. Powell’s talk was a mix of “we’re on the right track” and “let’s keep watching,” a dose of dovishness that nudged investors to tighten their belts.
What the Fed‑speaker Got All About
- Inflation focus: Powell said he wants “more” proof that inflation’s cooling before he’ll start trimming rates.
- Yield steadiness: Despite his talk, U.S. Treasury yields stuck in place, with the 10‑year at a modest 4.43% after a week of record highs.
- Dollar drama: The greenback stayed within its usual bands – a shrug‑style relief for those hopping on the gold wave.
Job Juggles and Economic Flavors
- U.S. job openings jumped past expectations (8.14 m vs. 7.92 m), proving the labor market is still humming even amid the Fed’s 5.25‑5.5 % rate range.
- China’s services PMI trailed, unsettling local stocks and softening the dollar’s brag game.
- ADP’s upcoming 160,000‑hire report is the next big hazy piece of the puzzle.
Gold’s Grey‑Haze Horizon
With the Fed’s stance still uncertain, gold sits in a trading “sideways” rhythm until the minutes of the next policy meeting on June 11‑12 arrive. Investors suspect those minutes might keep the dollar steady or swing it to the upside, meaning gold will probably enjoy a short‑term pause in the decline.
Why Central Banks Still Want Gold
The latest World Gold Council report shows central banks hauling in a ton of metal this May – Poland’s national bank leading the charge with a neat 10‑ton haul to its reserves. This “gold rush” keeps the metal’s demand alive, even if the market feels a tad jittery.
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