Gold Stuck at $4,400 Despite Bullish Bias

Gold prices are struggling to break above $4,400 as the new week begins, but analysts retain a bullish bias for bullion. The metal has been benefiting from renewed US Dollar weakness, driven by lower expectations of a Federal Reserve interest rate hike in September.

The University of Michigan's Consumer Sentiment Index dropped to 51.0 in August, down from 55.2 in July, while markets are pricing in just a 30% chance that the Fed will raise rates next month, down from roughly 50% seen a week ago.

Commerzbank analysts argue that the outlook for gold remains constructive, citing renewed buying interest from ETF investors as an additional tailwind. They note that the path higher is unlikely to be smooth, but see further upside potential for bullion.