Gold rises amid soft US Dollar as traders eye next week Fed meeting

• Gold price bounces from daily lows of $2,356, now at $2,385.
• Fed’s preferred inflation gauge shows mixed results, edging closer to the 2% target.
• US Treasury yields slump as bonds rally, signaling potential for multiple Fed rate cuts this year.

Gold price makes a U-turn after diving to two-week lows of $2,353 edges higher some 0.80% as market participants seem secure the Federal Reserve will lower interest rates at the September meeting, following a soft inflation report. The XAU/USD trades at $2,385 after bouncing off daily lows of $2,356.

The US Bureau of Economic Analysis (BEA) revealed that the Fed’s favorite inflation gauge, the Personal Consumption Expenditure Price Index (PCE), ticked a tenth higher monthly than May’s data. It dipped as foreseen in the twelve months to June, though it’s at the brisk of hitting the Fed’s 2% goal.