Gold price rallies on weak US inflation despite hawkish Fed tilt

• Gold soars above $2,330 as investors bet on Fed rate cuts later this year.
• Risk aversion due to European political turmoil boosts demand for safe-haven assets like gold.
• US Consumer Sentiment dips in June, inflation expectations remain above Fed’s 2% target.
• XAU/USD is underpinned by fall of 10-year US Treasury yield.

Gold’s price spiked during the North American session on Friday after inflation data in the United States (US) increased investors’ hopes of the Federal Reserve (Fed) cutting interest rates later this year. Additionally, risk aversion, spurred by Europe’s political uncertainty, triggered a flight to safety, bolstering the golden metal.

The XAU/USD trades at $2,333, gaining more than 1.30% after bouncing off daily lows of $2,301. Sentiment remains sour, yet US equities recovered some during the last hour of trading, with the Nasdaq up 0.28%, while the S&P 500 trims its earlier losses, shy of being flat on the day at -0.10%.