Gold Prices Steady Near $4,400 Amid Rising Fed Hike Expectations
Gold's price remained steady near $4,400 on Monday as investors continued to bet on a September rate hike by the Federal Reserve. The US Dollar gained strength amid rising interest rate expectations, weighing on precious metals like gold.
The FedWatch Tool from the CME indicated that investors now expect a 61% chance of a September rate increase, up from 36% the previous day. This hawkish sentiment pushed the US Dollar higher, making it more expensive for international buyers to purchase gold.
Friday's impulsive reversal saw gold prices drop below its 200-day simple moving average at $4,528, giving bears fresh confidence. Momentum indicators are neutral-to-negative, suggesting waning upside momentum and a possible further consolidation or downside probe.
The immediate support for gold is seen at Friday's floor in the $4,400 area, followed by lower lows around $4,310 and $4,225.