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Gold climbs near $4,400 as dollar weakens
Gold snapped a three-day decline and is set to react to US PPI and CPI data this week that could influence Fed rate expectations.
Gold prices recovered to near $4,400 in early Asian trading, snapping a three-day losing streak, as the US dollar weakened, FXStreet reported.
The outlook for gold is tied to what the Federal Reserve may do next, with traders watching key US inflation releases this week, including Producer Price Index data due Thursday and Consumer Price Index data due Friday.
FXStreet said markets are pricing in about a 60% chance of a rate hike at the Fed meeting next week, and that expectation matters because higher interest rates tend to reduce the appeal of non-yielding gold.
On technical levels, the article noted gold is holding above its 100-day moving average, while resistance is seen around the mid Bollinger band near $4,465, with downside protection linked to the 100-day MA around $4,345 and the lower band near $4,255.
Latest closeGold $4,445.30 ▲1.2%