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Gold slips in Asia as Fed hike bets and Middle East jitters lift the dollar
Traders are waiting for key US data later this week, including the Fed's preferred PCE inflation gauge and the final Q2 GDP report, which could drive the next move in USD and gold.
Gold prices edged lower in the Asian session on Wednesday, giving back part of Tuesday’s modest rebound from roughly the $4,100 area, which had been the lowest level since August 5, according to FXStreet.
FXStreet said the pullback is linked to stronger demand for the US dollar amid Fed hike expectations and Middle East tensions, even as downside pressure is tempered by traders holding off on new directional bets.
The outlet pointed to an upcoming slate of US releases that could shift market expectations, including the US Personal Consumption Expenditures Price Index, the final Q2 GDP print, the ISM Manufacturing PMI on Thursday, and the Nonfarm Payrolls report on Friday.
FXStreet also noted that US Treasury yields cooled from multiyear highs, supported by a drop in crude oil to a three-week low and remarks from New York Fed President John Williams suggesting the Fed does not need to rush its next move.
Latest closeGold $4,147.50 ▼4.0%|WTI crude $93.42 ▲1.1%