Home›Commodities›Precious Metals›Gold rebounds as the US dollar softens and Fed hike be…

Gold rebounds as the US dollar softens and Fed hike bets fade

Gold is trading around $4,381, supported by weaker US data and Treasury yields that have slipped, while traders assign about a 71% chance the Fed keeps rates unchanged next month.

Reported · Written up by our desk · Precious Metals

Gold (XAU/USD) rebounded after starting the day lower and hitting a fresh weekly low of $4,311, according to FXStreet. The metal was last around $4,381, helped by a softer US dollar and a pullback in expectations for an imminent Federal Reserve rate hike.

Fresh US data contributed to the shift in expectations, the outlet said, with retail sales falling 0.6% month over month in July, reversing a 0.2% gain in June and coming in below expectations for a 0.1% increase. Inflation signals also pointed to easing pressures overall, after this week’s CPI and PPI releases.

FXStreet added that University of Michigan preliminary data showed 1-year consumer inflation expectations rose to 4.3% in August from 4.2%, while the 5-year measure held at 3.3%. Despite the near-term tailwind for gold, it remains below Thursday’s two-month high of $4,449 and is testing technical resistance near the 100-day simple moving average around $4,386.

The piece also noted that front-end Treasury yields moved sharply lower, weighing on the dollar. The US Dollar Index (DXY) was around 99.50, down 0.45% on the day, and CME FedWatch pricing implied roughly a 71% chance the Fed will keep borrowing costs unchanged next month.

Latest closeGold $4,432.00 ▲1.6%|Dollar index 99.64 ▼0.3%

More like this

Sources