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Gold holds near multi-month highs as Fed hike odds soften
July US CPI broadly matched expectations, and investors are starting to take some profits after the rally.
Gold is trading close to multi-month highs after its recent advance was supported by the latest US inflation data, with July’s CPI broadly matching market expectations. That outcome has lowered the likelihood of a Federal Reserve rate hike in September, keeping downside opportunity cost lower for the non-yielding metal, according to Action Forex.
The article cites CNBC reporting that some investors have begun taking profits following the rally. It also notes that expectations for the Fed’s interest-rate path are likely to remain a key driver for gold over the coming weeks.
On the chart, Action Forex points to a sustained uptrend that carried price toward a red resistance level at $4,450. The price later broke below an ascending trendline on August 13 on increased volume, and the subsequent drop created a support area around $4,312.
After rebounding, gold has returned to a technical trading range, with the Point of Control at $4,397 and the lower boundary of the profile at $4,346. The piece highlights nearby levels that could matter if selling pressure builds, including $4,312 support, and it flags $4,397 to $4,415 as the first potential hurdles before any move toward the $4,450 trend high.
Latest closeGold $4,292.50 ▼0.6%