Daily Digest Market Movers: Gold price remains strong amid the multiple headwinds

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  • Boston Fed President Susan Collins said it will take longer than previously thought to bring inflation down to the 2% target, emphasizing that the rate will likely stay higher for longer. 
  • New York Fed president John Williams and Minneapolis Fed president Neel Kashkari also indicated that they favor holding rates at current levels for longer.
  • Investors have priced in a nearly 55% chance of a quarter-percentage-point rate cut from the Fed in September, down from 85% before the US employment report last week, according to CME's FedWatch Tool.
  • The first reading of the University of Michigan Consumer Sentiment Index is expected to drop from 77.2 in April to 76.0 in May.
  • Hamas has agreed to a draft ceasefire agreement that is "far from meeting Israel's demands, according to Israeli Prime Minister Benjamin Netanyahu. 
  • The People's Bank of China (PBoC) increased its gold reserves by 60,000 troy ounces in April, extending its streak of consecutive purchases to 18 months. 


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