US consumer inflation data for June came in surprisingly soft, with the headline measure falling and core inflation flat. This has significantly cooled market expectations for further Federal Reserve rate hikes, with odds for a July hike halving.
Consequently, Treasury yields slid, and the US dollar slumped against major currencies, including the Australian and New Zealand dollars, which extended gains. The kiwi dollar also received an added boost from hawkish rate expectations from the Reserve Bank of New Zealand.
This development suggests a potentially less aggressive stance from the Fed, which typically supports gold prices. A weaker US dollar generally makes dollar-denominated gold more attractive to international buyers, potentially leading to an upward trend in global bullion rates, which could influence local gold prices in Pakistan.
بحوالہ / Source: www.brecorder.com