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Gold holds above $4,400 as traders wait for US inflation data
Markets are weighing the Fed’s next policy path after US PPI is set for Thursday and CPI for Friday, with gold capped by a wait-and-see stance before the data.
Gold prices are holding above $4,400 after a dip to sub-$4,400 levels in the Asian session, though upside momentum appears limited as traders hold off on strong directional positioning ahead of key US inflation releases, according to FXStreet.
The US Producer Price Index will be published Thursday, followed by the Consumer Price Index on Friday, with the data expected to offer fresh signals on the Federal Reserve’s policy path and influence the US dollar, which tends to sway non-yielding bullion.
FXStreet also pointed to market-implied expectations for near-term Fed action, with investors pricing in around a 60% chance of a rate increase at the September 15-16 meeting, supported by an improving backdrop from last Friday’s better-than-expected US Nonfarm Payrolls and inflation risks tied to higher energy prices.
Additional support for gold stems from geopolitical risk in the Strait of Hormuz area, after Iran attacked 10 ships and the US said it sunk Iranian tankers, pushing crude oil to a fresh three-month high, while elevated US bond yields and expectations around central bank moves in Europe and Japan continue to shape currency and rate dynamics.
Latest closeGold $4,445.30 ▲1.2%|WTI crude $97.01 ▲4.3%