Gold proves resilient as Fed rate-hike hysteria wanes
Gold initially dropped on the Fed's first rate hike in over three years but quickly surged the next day, suggesting the pattern of selling on rate-hike fears may be fading.
Gold Market
Gold initially dropped on the Fed's first rate hike in over three years but quickly surged the next day, suggesting the pattern of selling on rate-hike fears may be fading.
Gold trades in a narrow range just above $4,300 as a resilient US dollar and expectations of hawkish decisions from the Fed, BoE, and BoJ this week cap gains.
Gold has recovered above $4,400 after touching one-week lows near $4,350. Traders now await US PPI and CPI data for direction, while technical levels highlight resistance at $4,463 and support at $4,340.
CPM Group's Jeffrey Christian examines the macroeconomic forces affecting gold, from the Fed's Jackson Hole meeting and India's jewellery market to bond market volatility and his outlook to year-end.
Gold remains close to a two-week low near $4,460 as Fed Chair Warsh’s hawkish tone and oil-fuelled inflation fears push September rate hike probability above 65%.
Gold dipped slightly to $4,381 per ounce on Tuesday as investors paused ahead of key US consumer price index figures and monitored Middle East risks.