XAU/USD climbs to $4,350 as softer US data reduces bets on a September Fed rate increase.
Gold (XAU/USD) rebounded to $4,350 after hitting a weekly low of $4,311, driven by a weaker US Dollar and diminishing expectations of a Federal Reserve rate hike in September. The metal remains below its two-month high of $4,449 reached earlier this week.
Recent US inflation data, including CPI and PPI, showed easing price pressures, while weaker-than-expected July Nonfarm Payrolls and downward revisions to prior months’ figures raised doubts about labor market strength. Front-end Treasury yields fell sharply, pressuring the US Dollar Index below 100.
Traders now see a 70% chance the Fed will hold rates steady in September, according to the CME FedWatch Tool. Upcoming US Retail Sales and Michigan Consumer Sentiment data may further influence market expectations.