Forex
Home›Forex›Major Pairs›Gold rises to $4,023-$4,024 as dollar cools ahead of U…
Gold rises to $4,023-$4,024 as dollar cools ahead of US CPI
The rebound comes as traders look to today’s US CPI and Fed Chair Kevin Warsh’s testimony, while US-Iran tensions keep oil elevated and inflation fears simmering.
Gold prices recovered further as the US dollar paused after a strong two-day rally, with XAU/USD climbing to the $4,023 to $4,024 area in the last hour, according to FXStreet.
FXStreet said attention is focused on the upcoming US consumer inflation report and the core CPI readings that track underlying inflation trends, plus Fed Chair Kevin Warsh’s semi-annual testimony before the House Financial Services Committee, both of which are expected to move rate expectations and, in turn, the dollar.
Gold’s reaction is also being shaped by geopolitical developments, as escalating US-Iran tensions and the closure of the Strait of Hormuz have pushed crude oil to a nearly one-month high, a dynamic that can reignite inflation concerns and support higher-for-longer rate bets.
Even with gold’s upside, FXStreet noted that firmer Fed hike expectations and dollar demand can limit follow-through, adding that the market remains positioned for potential volatility, including a risk of retesting the year-to-date low near $3,943 to $3,942.
Latest closeGold $4,011.00 ▼2.3%|WTI crude $78.04 ▲9.3%