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Gold pushes above $4,400 as US bond yields retreat
Gold gains extended for a second straight day, with traders pricing about a 62% chance of a Fed hike in mid-September.
Gold prices extended gains above $4,400 during the Asian session, building on a recovery from the $4,282 area after a nearly four-week low, according to FXStreet.
The move was tied to retreating US bond yields weighing on the US dollar, while bets on firmer Federal Reserve rate hike expectations and inflation risks from higher energy prices could still support yields.
FXStreet also pointed to market pricing from CME Group’s FedWatch Tool, which shows traders assigning about a 62% chance of a US rate hike at the September 15 to 16 policy meeting, a view lifted by Fed Chair Kevin Warsh’s hawkish remarks.
Oil prices near their highest level since July 24, amid escalating US and Iran tensions, kept a geopolitical and inflation risk premium in play, and FXStreet said traders may wait for Friday’s US nonfarm payrolls for more cues on the Fed path and the next directional move for gold.
Latest closeGold $4,431.70 ▲1.9%