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Gold slips below $4,450 as traders await FOMC Minutes
Gold is pressured despite renewed US dollar selling, as investors weigh inflation risks tied to a Middle East crisis and oil near a three-week high.
Gold prices retreated from earlier intraday strength and traded near the lower end of the daily range below $4,450 heading into the European session, according to FXStreet.
FXStreet said bulls are holding back on fresh directional bets despite renewed US dollar selling, with attention focused on upcoming FOMC Minutes as inflation concerns build. The backdrop includes crude oil climbing to a nearly three-week high amid the US-Iran standoff over the Strait of Hormuz, where Trump said the US is not in talks with Iran and Iran’s parliament speaker Mohammad Bagher Ghalibaf said the waterway would stay closed until US conditions from a June memorandum are met.
The risk premium tied to the geopolitical dispute is keeping oil firmer, which in turn is feeding inflation worries. FXStreet added that the longer end of the US 30-year bond yield has risen to its highest level since June 2007, and CME Group’s FedWatch tool shows traders pricing roughly a 68% chance of a Fed rate hike by year end.
On the technical side, FXStreet reported that XAU/USD has struggled to gain acceptance above the 50% retracement level of the April to June decline and remains below the 200-day simple moving average, keeping the near term bias bearish while gold consolidates near recent highs. The outlet said the 50% retracement at $4,406 is the first overhead hurdle, followed by the longer term SMA near $4,509.
Latest closeGold $4,432.00 ▲1.6%|WTI crude $82.40 ▲1.4%