For years, the financial news space has been flooded with narratives of dollar doom, an incoming hyperinflation, and gold winning once the U.S. currency finally dies.
The US dollar continues to recover from the blow dealt by the labour market statistics. A rally in Treasury bond yields is driving the rise in the USD index amid tensions in the Middle East and a resurgence of expectations that the Fed will tighten monetary policy in September.
Gold leads Bitcoin ahead of US CPI as safe-haven demand supports the $4,400 level, while the gold-to-Bitcoin ratio approaches a major turning point.
Copper, Gold, Platinum and Oil: What is driving the commodity markets right now?
Saudi Arabia Gold price today: Gold rises, according to FXStreet data
Philippines Gold price today: Gold rises, according to FXStreet data
United Arab Emirates Gold price today: Gold rises, according to FXStreet data
Pakistan Gold price today: Gold rises, according to FXStreet data
India Gold price today: Gold rises, according to FXStreet data
Malaysia Gold price today: Gold rises, according to FXStreet data
TL;DR: Gold has kept climbing even as Brent rebounded from $70 toward $90, a divergence that reflects markets betting the Fed won't tighten again without proof oil is feeding into core inflation — and Wednesday's CPI is the first test of that bet.
XAU/USD heads into US CPI with reversal risk building and history pointing to elevated volatility.