The US dollar posted its best weekly gain in the last two months on the realisation that the conflict in the Middle East is set to continue. The US-China summit failed to yield any breakthroughs on unblocking the Strait of Hormuz, and Donald Trump's threats are not working.
Gold holds $4,555 channel support as 17 months of central bank buying offsets CPI pressure — bulls target $4,597 Fibonacci resistance next.
Gold came under renewed pressure earlier today, briefly breaching below $4,500 level as the recent decline resumed. Although the precious metal later recovered some ground, the broader near-term outlook remains tilted to the downside as rising oil prices continue driving Treasury yields and Dollar higher together.
Gold price extended losses below $4,650 before the bulls appeared. WTI Crude oil prices are rising and could climb further higher toward $105.
Gold: Rates shock weighs on metals – OCBC
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Gold declines below $4,550 on rising Fed hike expectations
Gold prices plunged as hot CPI, rising Treasury yields and a strong dollar crushed Fed rate cut hopes and triggered heavy XAU/USD selling.