Gold Stalls Below $4,350 as Dollar Recovery Falters Ahead of CPI Release
The US Dollar's recovery is stalling ahead of today's Consumer Price Index (CPI) release, giving gold a gentle push higher. However, XAU/USD struggles to break above $4,350 and remains vulnerable below this level.
Bullion rallies are subdued due to high oil prices, which have boosted global inflation and forced central banks to tighten monetary policies. The Producer Price Index (PPI) data released on Thursday confirmed market expectations of a 5.4% year-on-year rate in August, while the Core PPI rose to 4.6% from 4.3% in July.
Investors are increasingly betting on a Federal Reserve rate hike next week, and today's CPI release will be closely watched to confirm these hopes. Gold trades at $4,344, retaining a mildly bearish near-term bias as it clings to the neckline of a bearish Head & Shoulders pattern.