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Gold slips after failing again near $4,435 as Fed hike odds soften
Investors are pricing a 35% chance of a September rate hike after weaker US data, keeping gold capped below its $4,435 ceiling for now.
Gold extended gains on Monday but pulled back after failing again to break above a temporary ceiling near $4,435, according to Action Forex.
The pullback comes as US and Iran tensions tied to the Strait of Hormuz remain elevated, while President Trump escalated rhetoric by threatening to strike Oman if it interferes with negotiations to reopen the strait.
On the rates front, Action Forex said the market is leaning toward fewer Fed moves after a disappointing July NFP report, softer inflation data, and weak retail sales, with investors assigning a 35% probability of a September rate hike.
The report also pointed to Wednesday’s Fed minutes as a potential catalyst for gold, noting that less hawkish wording could push gold through resistance toward $4,500, while a sharper Middle East escalation could drag it back toward $4,345 and possibly $4,200.
Latest closeGold $4,432.00 ▲1.6%