Gold Fails at $4,500 Resistance as Fed Hike Odds Fall to 30.6%

Gold's price continued its upward trend, reaching $4,370.90 at 8:01 a.m. ET on Friday, up $20.60 or 0.47% from the session before. However, it failed to break through the resistance level of $4,500 for the second time in two days, printing a weekly low of $4,311.

The metal had rallied hard into the CPI and PPI releases earlier in the week, but sold off after both prints came in supportive. The Central banks bought 288.9 tonnes in Q2, up 62%, while gold fell 22% on the quarter.

The collapse in September tightening probability is a major change in gold's macro backdrop since mid-July. CME FedWatch now prices a 69.4% chance the Federal Reserve holds at 3.50%-3.75% next month, with 30.6% still expecting an increase.