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Gold rises to weekly highs as US dollar softens and yields ease
Investors cut bets on a September Fed rate hike to 58% from 67% after softer US data, helping XAU/USD hold near $4,161.
Gold prices accelerated higher on Wednesday, with XAU/USD pushing above the top of a triangle pattern and extending gains to fresh weekly highs.
FXStreet said the move was supported by a softer US dollar, lower oil prices, and downbeat US macroeconomic data that cooled expectations for Fed rate hikes. The report noted that lower US Treasury yields followed Tuesday’s softer-than-expected US job openings and factory orders.
CME data cited by FXStreet showed markets trimming bets on a September rate hike to 58% from 67% on Tuesday. The currency and rate outlook also reflected oil easing, with West Texas Intermediate trading $10 below last week’s highs.
FXStreet said XAU/USD was trading around $4,161 with a constructive near term bias, while bulls would likely need to clear a horizontal resistance area near $4,220 to confirm a reversal. It added that a pullback could find support around the $4,000 level and near $3,945, the bottom of the triangle.
Latest closeGold $4,133.60 ▲2.5%