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Gold rebounds from weekly low as the dollar softens
Gold rose to about $4,372 after hitting a fresh weekly low of $4,311, with traders cutting odds of a September Fed rate hike to around 70%.
Gold (XAU/USD) bounced on Friday after opening lower and sliding to a fresh weekly low of $4,311, then trading around $4,372 as the US dollar weakened and expectations for an imminent Federal Reserve rate hike eased.
Fresh US data added to signs of cooling momentum, with retail sales falling 0.6% month over month in July, reversing the 0.2% gain in June and missing forecasts for a 0.1% increase.
The softer data flow pushed front end Treasury yields lower and kept the US Dollar Index (DXY) below 100, while the CME FedWatch Tool indicated traders were pricing roughly a 70% chance the Fed would keep borrowing costs unchanged in September.
Even with near term support, the article notes inflation is still above the Fed’s 2% target and oil remains elevated amid uncertainty over the reopening of the Strait of Hormuz, factors that could cap gold’s upside as investors stay cautious about chasing recent gains.
Latest closeGold $4,408.20 ▼0.0%|Dollar index 99.95 ▼0.1%