Gold price faces a defining week as CPI, Warsh testimony and Hormuz risks could reshape Fed expectations, Treasury yields and gold's next move.
The DAX, along with its European peers, is opening lower as investors weigh a tech sell-off alongside a fresh escalation in tensions between the U.S. and Iran, which has pushed oil prices higher and revived concerns over inflation and the outlook for interest rates.
Gold slides back closer to $4,050 as Iran risks and Fed hike bets boost USD
Gold falls below $4,100 as fresh US-Iran strikes stoke inflation fears
Gold prices slipped as oil-driven inflation fears pushed September Fed hike odds above 50%, lifting Treasury yields and the dollar ahead of CPI.
For more than a month, sellers have repeatedly pressed the same technical floor without securing a decisive weekly breakdown. That resilience has left XAU/USD locked in an increasingly important consolidation as the July opening range develops and the broader March decline begins to lose momentum.
The price of Gold has recovered from June's sharp sell-off, and HSBC believes the precious metal can continue to rebound even as a hawkish Federal Reserve keeps US yields elevated. The Gold price in US Dollars (XAU/USD) traded near $4,165 on Friday, up almost 1% on the day after rebounding more than 3% since the start of July.
Gold is testing critical trend resistance after a sharp correction, with key support holding. The next move depends on whether bulls can regain momentum.
Gold price slips as Trump says Iran ceasefire is over
United States CFTC Gold NC Net Positions: $194.2K vs $194K
Global markets are nervously anticipating the release of the U.S. Consumer Price Index (CPI).
The gold market has fallen during most of the week, as we continue to see the US dollar cause issues for gold bulls. It looks as if we are at a major point of inflection.