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Gold holds near $4,400 as softer data pushes USD to a two-month low
US retail sales fell 0.6% in July and Michigan consumer sentiment slipped in August, helping cool rate hike expectations that support bullion.
Gold traded around $4,400 and extended gains for a second straight day, with the metal holding a bullish tone early in the European session, FXStreet reported.
The move was linked to a weaker US dollar after signs of cooling US inflation, with US retail sales dropping 0.6% in July, the first fall in nine months, and the University of Michigan Consumer Sentiment Index falling to 51 in August from 55.2 the prior month.
FXStreet cited strategists at BNY saying softer US data have reduced rate hike expectations for the rest of 2026, while markets increasingly question the need for additional tightening later in the cycle. Further progress on inflation is expected to be pivotal for cementing that more dovish view, the outlet added.
Still, investors face risks to deeper moves, including concerns that volatile energy prices could complicate the inflation outlook and keep the Fed hawkish, as well as geopolitical uncertainty that limits losses for the safe-haven dollar. FXStreet also noted Treasury Secretary Scott Bessent said the US is preparing economic measures on Iran as soon as this week, and that markets remain focused on developments around the Strait of Hormuz and ongoing attacks in Ukraine that can lift oil prices.
Latest closeGold $4,432.00 ▲1.6%