Gold Market
Gold has stabilised around USD 4,400 per ounce as markets turn their focus to US inflation data. Commerzbank notes that futures imply a 60% chance of a rate hike, leaving room for a volatile week.
Gold prices edged higher on Tuesday as the US dollar softened. Traders are now focused on upcoming inflation data that could shape the Federal Reserve’s interest-rate path.
Gold’s price range of 4,230–4,697 remains intact. Friday’s US CPI may shift prices within that zone, but the bigger forces are the Fed’s expected rate peak, oil normalisation and the dollar debasement trade.
Gold dropped more than 0.4% on Monday after Friday’s US jobs report beat expectations, boosting bets that the Federal Reserve will raise interest rates again. Markets now price a 60% chance of a move in September.
Australian shares traded in a narrow range on Monday as strength in energy stocks from rising oil prices countered a 1% drop in gold miners, leaving the S&P/ASX 200 flat.
Gold opens the week near $4,400, caught between rate hike fears from strong US jobs data and support from a stable dollar. Technical indicators suggest consolidation.
Gold and silver prices fell as stronger US jobs data boosted expectations of higher interest rates. Analysts see a sideways trend ahead of US inflation data and the Fed's September meeting.
Gold prices fell on Friday after strong US employment data reinforced expectations of further Federal Reserve rate hikes, making the non-yielding metal less attractive.
Gold dropped nearly $100 on Friday after a surprise surge in US nonfarm payrolls boosted rate-hike expectations. The metal is set for a second consecutive weekly loss, and traders now look to next week's inflation data.