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Gold falls as oil gains and traders await US inflation data
West Texas Intermediate rises about 1% to $92.10 per barrel, while money markets price a 63% chance of a 25-basis-point Fed hike next week.
Gold prices fell more than 0.44% on Tuesday as markets focused on a US inflation week and a risk narrative tied to the US-Iran conflict, which helped lift oil.
Energy prices continued to climb, with West Texas Intermediate up about 1% to $92.10 per barrel. At the same time, investors looked ahead to US producer price index data on Thursday and consumer price index data the following day, which could shift expectations for near-term Federal Reserve rate policy.
FXStreet said money markets have priced in a 63% chance of a 25-basis-point Fed hike at next week’s meeting, citing Prime Terminal. It also noted that the reaction in gold has not been driven by moves in US bond yields or the US dollar, with the US 10-year Treasury yield flat at 4.788% and the US Dollar Index down 0.04% to 98.86.
Gold extended its decline for a third straight day, approaching the 100-day simple moving average near $4,346, with downside levels cited around $4,300 first, then $4,282 and $4,254 if losses deepen. The outlet also flagged additional support interest near $4,200, and resistance to watch above $4,400 toward $4,450 and $4,500.
Latest closeGold $4,431.70 ▲1.9%|Dollar index 99.58 ▼0.1%