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Gold rebounds from one-week low as US dollar stays weak
Gold bounced back near the $4,340 area after a three-day slide, but a potential September Fed rate hike and upcoming US CPI and PPI data could cap upside.
Gold prices rebounded from a one-week low around $4,340 after stopping a three-day losing streak, supported by a weaker US dollar.
FXStreet links the softer USD to a Bank of Japan inspired rally in the Japanese yen, which has helped lift non-yielding bullion, while noting that hawkish central bank expectations could limit how much gold can rise.
The outlook is also being shaped by shifting rate expectations after better-than-expected US Nonfarm Payrolls, which revived bets for a September Federal Reserve interest rate hike, with BNY arguing expectations for another hike are back to over 60%.
Geopolitical risk tied to US-Iran tensions is also in focus, as the article says it has pushed crude to a three-month high and raised inflation concerns, and traders are looking ahead to US PPI and CPI releases later this week for additional cues.
Latest closeGold $4,157.80 ▲0.4%|WTI crude $91.10 ▲3.2%