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Gold slips from multi-month highs as USD firms on rate and Middle East fears
The article links the move to expectations for about a 75% chance of an end-of-year Fed hike and to renewed safe-haven demand after US plans to isolate Iran from global markets.
Gold (XAU/USD) is facing rejection ahead of the $4,700 area and has pulled back from its highest level since May 14, according to an FXStreet market wrap.
FXStreet attributes the shift to still-supportive bets for higher US borrowing costs despite softer July inflation data, with traders pricing roughly a 75% chance the Federal Reserve will raise rates by the end of the year amid inflation risks tied to volatile crude oil prices.
The outlet also points to persistent Middle East uncertainty, including a US effort described by Treasury Secretary Scott Bessent to isolate Iran from the global economy and warnings that doing business with Iran could trigger US sanctions.
In parallel, FXStreet notes that an initial drop in US bond yields after a Treasury buyback expansion did not last, with attention returning to concerns around a national debt level above $40 trillion, while traders look ahead to the US PCE inflation data and Fed Chair Kevin Warsh's Jackson Hole remarks for further guidance on the dollar and gold.
Latest closeGold $4,432.00 ▲1.6%|WTI crude $82.40 ▲1.4%