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Gold holds near $4,000 as stronger dollar and Fed outlook pressure
Gold is quoted around $3,968, down nearly 3.7% for the week, while the US Dollar Index is near 100.86 after earlier weaker inflation data.
Gold is trading below the $4,000 level, with XAU/USD around $3,968 and down nearly 3.7% for the week, as the US dollar strengthens and investors weigh a more hawkish Federal Reserve outlook, FXStreet reports.
The US dollar’s rebound follows a softer-than-expected US inflation reading earlier in the week, but the currency’s latest strength is limiting gold’s upside. FXStreet also links the pressure to a revived inflation discussion tied to higher oil prices, which can keep expectations for Fed rate increases elevated.
Geopolitical developments in the Middle East are adding to the energy and inflation narrative, with FXStreet noting that Iranian officials said no oil or gas exports would pass through the Strait of Hormuz while US attacks persist, according to Tasnim.
On the rates side, FXStreet says markets are pricing roughly a 73% chance of a Fed rate hike by December, citing the CME FedWatch Tool, and it references remarks from Dallas Fed President Lorie Logan that modestly higher rates could balance risks. Technicals cited by FXStreet show gold remaining below key moving-average levels, with initial resistance near the $4,072 area and further hurdles toward $4,199 and $4,200.
Latest closeGold $3,981.40 ▼1.6%