Gold Prices Soar Then Sink as Fed Rate Hike Looms
Gold prices surged nearly 2% to $4,402.19 per ounce last Friday, only to close up 0.74% at $4,348.35. The weekly cumulative decline still stood at around 1.8%, but this swift recovery has drawn significant market attention.
The latest U.S. inflation data have bolstered expectations for a Fed rate hike this week, while ongoing geopolitical tensions in the Middle East continue to push oil prices higher and heighten uncertainty about the interest-rate outlook.
Investors are closely watching the upcoming Federal Reserve policy meeting and assessing whether gold has established a technical bottom following its recent pullback. Tai Wong, an independent precious metals trader, noted that gold is rebounding rapidly after a brief pullback, as CPI data has further reinforced expectations of interest-rate hikes, already priced into the market, and volatility has eased.