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Gold holds above $4,400 as rate-cut hopes fade after weak US jobs
Gold pushed to about $4,435, its highest level since June 5, as markets scaled back expectations for an immediate Fed hike but still price year-end tightening amid Middle East driven oil inflation risks.
Gold prices climbed for a third straight session, with XAU/USD rising to around $4,435 during Tuesday’s Asian trading, the highest level since June 5, according to FXStreet.
FXStreet linked the move to shifting expectations for US monetary policy after weak Friday US Nonfarm Payrolls data signaled cooling labor conditions, prompting traders to pull back near-term rate hike bets.
At the same time, the outlet said inflation concerns tied to volatile oil prices were keeping pressure on the Fed outlook, supported by geopolitical risks in the Middle East that have been associated with higher crude prices and renewed hawkish expectations for year-end borrowing costs.
FXStreet also pointed to upcoming US inflation releases, the Consumer Price Index and the Producer Price Index later this week, as potential drivers for near-term dollar and gold price dynamics, while noting technical indicators that suggest buyers remain in control.
Latest closeGold $4,448.60 ▲2.5%|WTI crude $82.30 ▲5.3%