Gold Retreats to $4,300 as Traders Weigh Fed Rate-Hike Path

Gold prices have retreated to around $4,300 as traders reassess their expectations for the Federal Reserve's next move on interest rates. The metal had briefly touched $4,500 in intraday trading and reached a two-month high of $4,449 before profit-taking kicked in.

The July US jobs report came in weaker than expected, which made non-yielding assets like gold more attractive to investors. However, the rally didn't stick, and the flat Producer Price Index for July gave traders reason to pare back their positions.

Currently, the market-implied probability of a September rate hike sits at around 34%, down from approximately 55% earlier. This downward shift in rate expectations has been the primary tailwind keeping gold prices above $4,300.

Gold's performance over the past year has been solid, with prices climbing roughly 25% on a trailing twelve-month basis. However, it remains about 23% below its record highs near $5,600 set in January 2026.