Traders await Wednesday’s US inflation report and Middle East tensions after XAU/USD dips 0.18% on dollar strength.
Gold (XAU/USD) retreated 0.18% to $4,381 on Tuesday, pressured by a firmer US Dollar as markets brace for key inflation data and geopolitical risks. The metal hit a daily high of $4,435 before paring gains amid elevated energy prices and uncertainty over the Strait of Hormuz.
Economic data showed mixed signals, with ADP employment figures revised downward to 11K jobs from 15K, while the 4-week average fell to 8.25K. Existing Home Sales dropped 1.7% in July to 4.06 million, down from 4.13 million, as mortgage rates surged 71 basis points since the US-Iran conflict escalation.
Attention now shifts to Wednesday’s US Consumer Price Index, where headline inflation is expected to ease to 3.4% YoY, with core CPI projected at 2.5%. Producer Price Index data follows Thursday, adding to market volatility.