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Gold steadies near $4,401 as bets shift toward a Fed pause

CME FedWatch shows about a 70% chance the Fed keeps rates unchanged in September, compared with 48% a week earlier.

Reported · Written up by our desk · Major Pairs

Gold held modest gains on Monday, trading near $4,401 after an intraday high of $4,416 during Asian hours, with the US Dollar under selling pressure, according to FXStreet.

The shift in expectations from a rate hike to a pause followed a run of softer US data, including a decline in July Nonfarm Payrolls, lower monthly Retail Sales, and slowing CPI and PPI inflation on an annual basis.

FXStreet said that weaker short-term Treasury yields have weighed on the dollar, steepening the yield curve and creating a more difficult backdrop for the currency.

Gold also remained sensitive to Middle East developments, particularly the chance of reopening the Strait of Hormuz, as a June memorandum of understanding between the US and Iran expires on Monday without an agreement.

Latest closeGold $4,292.50 ▼0.6%

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