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Gold steadies near $4,080 as Middle East, shipping risks lift risk hedges
Gold’s gains are being weighed by softer US private hiring and growing odds of a September rate hike.
Gold traded around $4,080 per ounce on Wednesday, extending a nearly 2% rise from the prior session as investors weighed heightened external risks and the inflation impact of higher oil prices. Action Forex links support to Donald Trump downplaying any imminent Iran negotiations and warning of further strikes, alongside additional supply concerns tied to disruptions to shipping in the Red Sea and attacks on the Caspian Pipeline Consortium terminal on Russia’s Black Sea coast.
The outlet also points to a cooling US labour market as a counterweight. ADP data showed private-sector hiring slowed for the fourth consecutive period, averaging 16,500 jobs per week in the four weeks to 4 July, down from 19,250 in the prior four-week stretch.
Despite the risk backdrop, Action Forex says gold upside may be limited by expectations that the Federal Reserve will keep rates unchanged next week, with the probability of a September rate hike exceeding 55%. The piece adds that technical signals show the metal trading in consolidation ranges around 4,044 to 4,088, with bearish momentum emerging on shorter timeframes.
Action Forex further notes a recent sequence on the H4 XAU/USD chart, including a move higher to 4,140 followed by a drop back to 4,044 and a rebound to 4,088, while it expects a potential move lower toward 3,940.
Latest closeGold $4,117.00 ▲1.1%