Forex
Home›Forex›Major Pairs›Gold slips below $4,300 as USD firming offsets Fed cau…
Gold slips below $4,300 as USD firming offsets Fed caution
Gold retreated from its June 18 peak after some US Dollar buying, while traders cut the odds of a September Fed rate hike to about 55% from 67% following softer US data.
Gold prices are struggling to hold gains above $4,300 and have pulled back from the highest level since June 18, according to FXStreet, as some US Dollar buying emerged during Thursday’s Asian session.
The move reflects revived USD demand tied to recent warnings from US Federal Reserve officials that inflation risks could require additional interest rate hikes, while officials said they want more data to judge whether inflation is temporary or persistent.
FXStreet also pointed to market pricing: traders are still forecasting roughly an 80% chance of a Fed rate increase by the end of this year, though the probability of a September hike eased to about 55% from 67% after the ADP report showed US private-sector employment rose 40K in July, down from 95K the prior month, and the ISM Services PMI improved to 54.1 from 54.0 but missed expectations.
Separately, FXStreet noted developments in the Middle East, including Iran-backed Houthis reporting missile attacks on a Saudi oil tanker and on another target in the Gulf of Aden, while investors remain focused on optimism around a US-Iran peace deal and potential reopening of the Strait of Hormuz, which has kept oil prices near a multi-week low.
Latest closeGold $4,308.50 ▲5.2%