Spot gold prices are lower and spot silver prices are firmer in early U.S. trading Monday, as traders weighed higher September Fed-hike odds and a renewed Strait of Hormuz oil shock against defensive demand tied to fresh U.S.-Iran escalation.
Gold market pressure builds as the Larak Island strike lifts oil, inflation risk stays elevated and Warsh's rate-hike warning keeps the dollar and yields firm.
Gold declined in Asian trade. The current pullback below the $4,600 level is likely to be a natural correction on profit-taking after a strong upward rally, said XS.com.
The latest Kitco News Weekly Gold Survey showed half of Wall Street still bullish even after gold's dramatic Friday slide, while Main Street sentiment pulled back from last week's high-water mark.
Gold has seen a sharp pullback ahead of the weekend, but its impressive gains this past month should be a wake-up call for investors.
Jim Bullard says a hold next month could still be hawkish, foreign central banks found physical gold more desirable than Bitcoin this year, and gold's run-up may signal eroding faith in the Fed, something he says is "on the radar screen."
The gold market may have 40 trillion reasons to go higher through the rest of the year, but analysts say that renewed expectations that the Federal Reserve still needs to fight inflation could add some volatility to the market next week.
Gold price dropped $235 in four sessions after Warsh revived September rate-hike odds, broke the 200-day MA and lifted the dollar.
Gold prices are lower after the latest U.S. employment data showed a relatively small downward revision to the nonfarm payrolls numbers over the last year.
The gold market is seeing significant selling pressure as Federal Reserve Chair Kevin Warsh reiterates his commitment to bringing inflationary pressures back in line with the central bank's 2% target.
The gold market is trading at session lows after the latest data showed consumer sentiment in the U.S. declining, with shorter-term inflation expectations easing.The University of Michigan announced on Friday that the final reading of its Consumer Sentiment survey for August was 51.7. The data was better than expectations, as the consensus forecast of economists called for a reading of 51, but it was well below July's final reading of 55.2.
The precious metal rallies Gold is showing signs of life. After suffering its worst quarterly return in more than a decade amid rising yields and other pressures, gold has rebounded roughly 15% since June.