US consumer confidence weakened in May as concerns grew over inflationary pressures linked to the Iran conflict. Households also remained largely pessimistic about labor market conditions, although many expected improvement later in the year.
Investors are now awaiting comments from Federal Reserve officials, including Philip Jefferson and Lisa Cook, for further clues on how inflation may shape future monetary policy decisions.
Market participants are also focused on the upcoming US Personal Consumption Expenditures (PCE) data for April, scheduled for release on Thursday, which could provide additional insight into the Federal Reserve’s policy trajectory.
UBS reduced its year-end gold price target by $400 to $5,500, citing continued risks from elevated bond yields and a stronger dollar.
