Gold Holds Near Two-Month High as Oil Rally Clouds Fed Outlook
Gold prices traded nearly flat on Tuesday after briefly reaching their highest level in more than two months. Spot gold hovered around $4,391 an ounce, while gold futures edged higher to about $4,450.
Pressure on bullion came from rising U.S. Treasury yields, which climbed to a one-week high. Higher yields reduce the relative appeal of non-yielding assets such as gold, especially as markets reconsider the possibility of further Federal Reserve rate hikes.
Despite that pressure, gold remained relatively resilient. Buying interest continued to come from investors who feared missing the rally after gold’s earlier pullback toward the $4,000 area. Short-covering and renewed safe-haven demand also helped support prices.
China remained another important source of demand. The People’s Bank of China increased its gold reserves in July by the largest amount since October 2023, reinforcing signs of continued official-sector buying.
Attention now turns to Wednesday’s U.S. CPI report, which could provide fresh clues on the Fed’s next policy move. Renewed gains in oil prices have added to inflation concerns, pushing the market-implied probability of a September rate hike to around 52%, up from roughly 44% on Monday.(mrv)
Source : Newsmaker.id
