Weaker US jobs and inflation data cut September Fed rate hike odds to 35%, lifting XAU/USD above $4,415.
Gold prices rose to near $4,415 in early Asian trading Tuesday, extending gains as softer US economic data diminished expectations for further Federal Reserve rate hikes. The July Nonfarm Payrolls miss and subdued consumer inflation last week reduced the likelihood of a September rate increase, pressuring the USD and making bullion more attractive to buyers.
Markets now assign a 35% probability to a Fed hike next month, down from 47% a month earlier, according to the CME FedWatch Tool. While Middle East tensions could revive inflation concerns, analysts suggest gold’s upward momentum may persist if oil prices remain stable.
The USD’s decline provided additional support for XAU/USD, though geopolitical risks in the Middle East remain a key watch factor for traders.