Gold Prices Break Through, but Still Face Significant Pressure

Gold prices have broken through to new heights, but they still face significant pressure from various market factors.

The US dollar's weakening and reduced expectations of a Fed interest rate hike in September are supporting gold prices, which surged to around $4,416.9 per ounce on August 18.

However, the upward momentum is being offset by high bond yields, which make it more expensive for investors to hold gold.

The release of US economic data last week, including lower-than-expected retail sales and a cooling consumer price index, reduced market expectations of a Fed rate hike in September.

According to Kitco, the market now values a 30-31% chance of a Fed rate hike in September.

The Empire State Survey by the New York Fed showed that the general business performance index increased 5 points to 20.6 in August, the highest level in over four years.

Rising oil prices are also putting pressure on gold prices, with WTI crude oil trading at around $84.58 per barrel and Brent oil at nearly $90.87 per barrel.