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Gold holds near $4,343 as Fed rate hike hopes fade
XAU/USD is consolidating after a nearly 7.5% rally last week, helped by lower US Treasury yields following weaker-than-expected Nonfarm Payrolls.
Gold prices held moderate gains near $4,343 in Monday trading, consolidating after a nearly 7.5% rally last week, according to FXStreet. The metal remained just below recent two-month highs around $4,380 as traders recalibrated rate expectations.
FXStreet linked the move to lower US Treasury yields and a weaker US dollar after the Nonfarm Payrolls report. The release showed net employment down 23K in July versus expectations of an 80K increase, along with sharp downside revisions to prior months.
The report also pushed futures markets to scale back expectations for a September rate hike to 44%, down from 67% the week before, FXStreet added. It said XAU/USD maintains a bullish near-term bias, with resistance seen at the $4,380 area and upside potential toward $4,595.
On the downside, FXStreet pointed to initial support above $4,200 and further levels near $4,000 and around $3,950, noting that RSI overbought conditions on the four-hour chart have not led to sustained selling so far. The outlet also reiterated that gold is widely viewed as a safe haven and an inflation hedge, citing central banks as major holders.
Latest closeGold $4,292.00 ▲1.1%