Gold Bulls Eye $4,400 as Fed Minutes Loom
Gold prices have surged back near $4,400 as softer inflation prints and weaker US data push the market towards fewer September interest rate hikes by the Federal Reserve. The decline in real yields supports non-yielding gold.
The $4,400 area has become a key battleground for gold bulls, with a sustained break above it potentially pulling momentum traders back into the market. Physical demand is also improving, as evidenced by global physically backed gold ETFs attracting $3 billion in July and increasing holdings by 23 tonnes to 4,068 tonnes.
The Federal Reserve's upcoming release of minutes from its July 28-29 meeting could provide crucial insight into policymakers' views on inflation risks. Gold bulls will be looking for evidence that officials are becoming more comfortable waiting before raising rates again.