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Gold slips below $4,400 as oil price rise boosts inflation worries
Markets have shifted to pricing a September rate hold, while a weaker Fed tightening outlook and central bank buying from China continue to support gold.
Gold slid below 4,400 USD per ounce on Tuesday, giving back earlier gains as the broader metals market corrected and traders took profits after a strong rally, Action Forex reported.
The metal faced additional pressure from higher oil prices, which renewed concerns about inflation and the outlook for interest rates, while the geopolitical backdrop also darkened after Donald Trump said he was not interested in extending the interim US-Iran peace deal.
Action Forex said gold is still supported by diminished expectations for further Federal Reserve tightening after weak US economic data. The market is now primarily pricing a September rate hold, with a year-end hike no longer fully priced compared with a week earlier.
Technically, Action Forex described gold forming consolidation around 4,370 on the H4 XAU/USD chart, with expectations for a move lower toward 4,370 and potentially 4,340, before the possibility of a later rebound toward 4,516. The outlet also pointed to momentum signals on MACD and the stochastic oscillator aligning with that near-term downside risk.
Latest closeGold $4,432.00 ▲1.6%