gold corrected lower on Friday following three straight days of gains which had pushed it to the highest level since May 22. The metal closed with a slight loss of 0.11% at $2411 on Friday as it rose for the third straight week. It was up 0.83% on the weekly closing basis.
The US bond yields/Dollar Index
The US yields and the US Dollar Index slumped to multi-week lows on the subdued US CPI inflation data (June). The ten-year US yields slid 0.60% on Friday as the yields fell around 2% on the week. The two-year yields, more sensitive to monetary policy, were down nearly 3% on the week. The US Dollar Index was down about 0.80% this week.
Data round-up
US CPI inflation data trailed the forecast on all the counts as rents, the sticky component moderated. CPI m-o-m came in at -0.10% (forecast 0.10%), CPI ex food and energy m-o-m at 0.10% (forecast 0.20%), CPI y-o-y at 3% (forecast 3.10%), and CPI ex food and energy y-o-y was noted at 3.30%(forecast 3.40%).
The US PPI data, released on Friday, was noted at 2.6% y-o-y, (forecast 2.3%). PPI m-o-m showed a rise of 0.2% in June (forecast 0.1%). The PPI ex food and energy was above the forecasts on both the m-o-m and y-o-y basis. University of Michigan consumer confidence trailed the forecast; however, inflation expectations were lower than the estimates.
Powell's testimony
The US Federal Reserve Chair Powell in his two-day testimony to the Senate Banking Committee and House financial services sounded more positive on rate cuts. He said that the Fed will not wait for the