FX.co ★ XAU/USD, GOLD

XAU/USD As prospects for a peaceful Middle East put pressure on oil prices, gold prices climb. Demand for bullion is supported by a declining US dollar and reduced Treasury yields. CPI, PPI, retail sales, and Fed speeches are all of interest to traders. Gold (XAU/USD) increased by roughly 0.75% on Friday as financial markets continued to express optimism about a potential resolution to the Middle East crisis, which would drop oil prices and reduce inflationary pressures. The XAU/USD pair has recovered from daily lows of $4,673 and is currently trading at $4,711. As Iran takes longer to respond to the US 14-point memorandum plan to end the dispute, tensions in the Middle East are still high. While both nations fired gunfire in the Persian Gulf and the United Arab Emirates (UAE) were being attacked, Secretary of State Marco Rubio stated that they were awaiting a response. West Texas Intermediate (WTI) is expected to conclude the week down more than 6%, despite oil prices fluctuating between prolonging and reducing losses. As a result, the US Dollar Index (DXY), which measures the value of the dollar relative to a basket of six currencies, drops 0.33% to 97.93, putting the Greenback—which has been positively correlated with WTI—on the defensive. The price of the yellow metal is supported by the decline in US Treasury yields. At 4.362%, the US 10-year T-note is down two basis points. US nonfarm payrolls increased by 115K in April, exceeding the forecast of 62K; the amount for March was revised up from 178K to 185K. Average hourly wages increased 3.6%, falling short of the 3.8% forecast, while the unemployment rate remained at 4.3%, below the Fed's 4.5% annual estimate. The University of Michigan Consumer Sentiment dropped to a record low in May, from 49.8 in April to 48.2, the all-time low, indicating that families in the US are growing gloomier, according to other data. According to the report, rising petrol prices are hurting Americans.