FX.co ★ Gold Holds Heavy Loss

Gold stabilized at approximately $3,300 per ounce on Wednesday following a significant decline in the previous trading session. This was influenced by the strengthening of the US dollar and a brighter outlook on riskier investments, both factors exerting pressure on the precious metal. The uptick in the dollar was fueled by data indicating a substantial rebound in US consumer confidence during May, recovering from levels not seen in nearly five years. This suggests a more favorable perspective on both the economy and the labor market prospects. Furthermore, President Donald Trump's recent move to postpone tariffs on EU imports, providing an extended timeframe for negotiations, has helped alleviate fears of rising trade tensions. In addition, Neel Kashkari, President of the Minneapolis Fed, expressed on Tuesday the importance of maintaining steady interest rates until there is further clarity on the impact of increased tariffs on inflation. Market participants are now focusing on the release of the Federal Reserve's latest meeting minutes scheduled for later today, along with the PCE inflation data due on Friday, to gain further understanding of the central bank's interest rate policy direction.