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Gold holds in $4,000 to $4,200 range amid softer US dollar
Gold was last around $4,095 after dipping to $4,028, while the US Dollar Index fell to about 99.90 as markets weighed suspected Japanese yen support.
Gold prices have remained stuck in a monthlong $4,000 to $4,200 trading band, with the metal hovering near $4,095 during US trading hours after an intraday low of $4,028, according to FXStreet.
The report attributes some of golds tone to renewed US dollar selling, with the US Dollar Index near 99.90, its lowest level since June 17, down 0.90% on the day, following suspected Japanese intervention aimed at countering yen weakness.
FXStreet also points to recent US data that lowered the odds of renewed inflation pressure, including June core PCE rising 0.1% month over month versus 0.2% expected, and annual core inflation easing to 3.3% from 3.4%. The same update notes second quarter US economic growth of 1.5% on an annualized basis, below the 2.1% forecast.
Still, golds rebound faces limits, the outlet says, because energy linked risks keep inflation concerns elevated and Fed expectations remain hawkish, with the CME FedWatch Tool showing a 55% probability of a rate increase in September. FXStreet adds that ongoing Middle East developments, including US military strikes against Iran, are also keeping inflation risks in focus.
Latest closeGold $4,134.80 ▲2.4%|Dollar index 100.80 ▼0.6%