Daily digest market movers: Gold price strengthens amid strong US Dollar

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  • US Dollar Index (DXY) increased by 0.28% to 105.53, capping Gold prices.
  • University of Michigan Consumer Sentiment Index fell to 65.6 in June from 69.1, missing the consensus estimate of 72. This marks the lowest level of sentiment in seven months.
  • Inflation expectations for the next twelve months are projected to remain unchanged at 3.3%; while for the five-year period, inflation expectations are anticipated to decrease to 3.1%, down from the previous 3.3%.
  • On Wednesday, Fed Chair Jerome Powell stated that they are less confident about inflation than previously "in order to cut." He added, "If jobs are to weaken unexpectedly, the Fed is ready to respond." When asked about the US CPI report, Powell noted that it is just one report and emphasized the need to see the deflation process evolving toward the Fed’s goal.
  • Despite US CPI report showing disinflation process continuing, Fed Chair Jerome Powell commented that they remain “less confident” about the progress on inflation.
  • Even though the latest US CPI and PPI reports were weaker than expected, the latest NFIB Small Business Optimism Index survey for May showed that businesses are struggling with higher prices and access to cheap financing.


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