American inflation data has confirmed expectations of interest rate cuts by the Federal Reserve, with Treasury yields remaining stable after a significant decline.
The sentiment outlook for lower yields caused the 10-year Treasury yield to fall seven points to 4.21% in the previous session. Chicago Fed President Austan Goolsbee declared the CPI data “brilliant” and said it would provide confidence that the central bank's FED is on track to reach its 2% inflation target.
Meanwhile, the yen experienced "volatility" in today's trading session when the Bank of Japan carried out rate checks with traders, this action was seen to have confirmed the belief of market players that the BOJ authorities were seen to have carried out intervention in the market (intervention) last Thursday. aims to support the currency. This intervention shows the BOJ's commitment to maintaining market stability.
In the commodity market, gold prices in India declined, with the rate per gram falling to 6,465.21 Indian Rupees (INR) from INR 6,485.48 on Thursday. Price per tola decreased to INR 75,408.89 from INR 75,645.38.
XAU/USD gold prices also experienced early changes in today's Asian trading session, gold was seen testing the $2,400 level after hitting a two-month high of $2,425 on Thursday.
Traders are now focusing on tonight's American Producer Price Index (PPI) data report and the risk of possible forex market interference by the Central Bank of Japan, which is expected to influence future gold price movements.
The recovery in the US dollar may continue the decline for gold, but market players remain cautious ahead of the PPI and Michigan User Sentiment reports as well as preliminary Inflation Outlook later this evening, which may renew selling pressure on the dollar and trigger a new spike in gold prices.
