- Gold price gains ground ahead of the release of the US PPI and Consumer Sentiment Index.
- The overnight surge in Wall Street could limit the advance of Gold prices.
- Gold garners attention from buyers following the weakening of the US Dollar in response to softer Retail Sales data reported on Thursday.
Gold price extends its gains for the second session, trading higher around $2,010 per troy ounce during the European session on Friday. The precious metal attracts some buyers amid risk aversion sentiment before the release of key economic data from the United States (US), particularly Producer Price Index (PPI) data and the Michigan Consumer Sentiment Index.
The overnight surge in Wall Street could be attributed to the market optimism as no rate adjustment is viewed by the Federal Reserve (Fed) in its upcoming meetings in March and May, which could have limited the advance of Gold prices. However, the CME FedWatch Tool shows a 52% likelihood of a 25 bps rate cut in June.
The softer US Retail Sales data on Thursday weakened the Greenback, which in turn, underpinned the Gold prices. US Retail Sales (MoM) decreased 0.8% in January against the market expectation of 0.1% decline and the previous 0.4% increase. Meanwhile, Retail Sales Control Group declined by 0.4%, against the previous increase of 0.6%.
However, the US Initial Jobless Claims report for the week ending on February 9 showed a print of 212K, against the anticipated consistency at 220K. These figures, combined with the positive Consumer Inflation released on Tuesday, might have helped mitigate potential losses for the US Dollar.
Federal Reserve Bank of Atlanta President Raphael W. Bostic seeks progress in addressing inflation, albeit with potential bumps along the way. Bostic indicated that if inflation were to recede more rapidly, he would reassess his interest rates outlook.
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