Inflation Eases; Gold Holds Above US$4,050
Gold prices opened the week with modest gains, holding above US$4,060 per troy ounce. However, the upside remained capped below US$4,100 as the US dollar attempted to rebound from its lowest level since mid-June.
Gold found support from a sharp drop in oil prices following US President Donald Trump's decision to call off a planned strike on Iran. Washington and Tehran are scheduled to resume talks on Monday, raising hopes for an end to the five-month-long conflict.
An OPEC+ decision to increase production in September also weighed on oil prices. Lower energy costs helped alleviate inflation concerns and reduced the likelihood of aggressive interest rate hikes by the Federal Reserve, creating a positive sentiment for gold.
Nevertheless, market participants remain cautious as they await developments in the US-Iran negotiations. A diplomatic failure could reignite demand for the dollar and safe-haven assets, while triggering sharp volatility in gold and global financial markets.
Market focus now shifts to the US ISM Manufacturing data due Monday and the Nonfarm Payrolls report on Friday.
Newsmaker Analysis: Gold maintains a limited bullish outlook as long as it holds above US$4,050, with immediate resistance located in the US$4,080–US$4,100 range. (asd)
Source: Newsmaker.id
