Gold Rebounds as Market Awaits Federal Reserve Decision

Gold prices showed resilience in the face of inflation data and rising interest rate expectations. Despite this, gold rose 1.16% in the first hour after August's Consumer Price Index (CPI) release.

This modest gain is notable, given the jump in September Fed hike odds. However, speculative COMEX gold positioning remains crowded at 54.94% of open interest. This level has not historically produced a reliable bearish signal.

The market now targets $4,470 into the 16 September Federal Reserve decision, with a preferred entry point and invalidation level set between $4,330-$4,350, and below $4,290, respectively.