XAU/USD rises to $4,544, its highest since June, as cooling US inflation data reduces Fed rate hike expectations and pressures the USD.
Gold prices reached $4,544 during Friday’s Asian session, marking a two-month high as traders trimmed bets on an immediate Federal Reserve rate hike. The move follows last week’s US inflation data, which signaled easing price pressures and weighed on the USD near three-month lows.
The metal extended gains above its 200-day Simple Moving Average, a key technical level. However, concerns over inflation risks persist, fueled by rising oil prices amid geopolitical tensions, including US-Iran standoffs and Houthi attacks on oil tankers.
Despite the Fed’s July meeting minutes hinting at potential rate hikes, markets remain focused on cooling inflation. US bond yields remain elevated, partly offsetting gold’s rally, while the CME Group’s FedWatch Tool shows a 68% chance of a September rate cut.