Gold Bounces to $4,400 Amid Dollar Weakness
Gold prices have rebounded to around $4,400 after trimming losses on Wednesday. The precious metal drew support from broad-based US Dollar weakness, but the bearish trend remains intact.
The Greenback is on its back foot, with investors awaiting Friday's US Consumer Inflation figures to confirm expectations that the Federal Reserve will hike interest rates next week. Strategists at Brown Brothers Harriman argue that 'a hot CPI print would all but seal a September hike and underpin a firmer USD,' while 'a cooler reading would strengthen the case for a hold and leave USD vulnerable to a dovish Fed repricing.'
XAU/USD has been contained within Tuesday's range, with price action capped below the 200-day Simple Moving Average. A bearish Head & Shoulders pattern looms, with last week's knee-jerk reaction looking like the second shoulder of this formation.