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Gold climbs near $4,415 as Fed hike odds cool on US data
CME FedWatch pricing shows a 35% chance of a Fed rate hike, down from 47% a month earlier, while Middle East tensions remain a risk via potential oil-driven inflation concerns.
Gold edged higher in early Asian trade, moving toward $4,415 as traders pushed back expectations for another US Federal Reserve rate hike. FXStreet attributed the shift to softer US macro data, including a decline in July nonfarm payrolls and only modest consumer price inflation reported last week.
The price action reflected weaker demand for the US dollar, with markets now pricing a 35% chance of a Fed hike at the upcoming policy meeting, down from 47% a month earlier, according to the CME FedWatch Tool cited by FXStreet.
FXStreet also pointed to countervailing risks for bullion, noting that ongoing tensions in the Middle East could revive concerns about oil-driven inflation, potentially weighing on the yellow metal.
The report added that HSBC analyst James Steel said gold’s path of least resistance could stay higher if oil does not spike and the Middle East situation does not escalate further, even as it said technical signals remain broadly constructive near term.
Latest closeGold $4,432.00 ▲1.6%