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Gold pauses near two-month high as oil swings revive rate-hike bets

Gold last traded around $4,397 after an intraday low near $4,356, as WTI stayed above $80 and Oil-driven inflation concerns pushed the market toward a potential September Fed hike.

Reported · Written up by our desk · Precious Metals

Gold held near a two-month peak but paused its rally on Tuesday, after reaching $4,435 earlier in Asian trading, FXStreet said. The metal later traded around $4,397, following an intraday low of about $4,356.

The move was shaped by swings in Oil prices and their implications for the Federal Reserve’s interest-rate outlook. FXStreet noted that WTI was near $80.80 and up more than 5% on the week, while earlier market pricing for a hike was briefly tempered by weaker-than-expected July nonfarm payrolls.

Gold also faced a tougher backdrop as Oil strength brought inflation worries back into focus, with the CME FedWatch tool showing a 49% chance of a September rate increase. The outlet said a stronger dollar near recent lows and elevated US Treasury yields weighed on Gold’s ability to extend gains.

FXStreet added that traders may look to the US consumer price index data due Wednesday for fresh direction, while near-term US-Iran headlines are expected to drive price action. The report cited technical levels, including Gold holding above the 50-day simple moving average at $4,148 and hovering around the 100-day moving average near $4,389.

Latest closeGold $4,448.60 ▲2.5%|WTI crude $82.30 ▲5.3%

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