Commodities
US Inflation Data Set to Test Gold Prices Ahead of Fed Meeting
Gold prices have taken a hit in recent weeks, falling over 6.50% in two weeks due to rising US inflation, bond yields, crude oil, and a stronger dollar.
The upcoming US inflation data could decide gold's next move ahead of the Fed meeting on September 15-16.
Ross Maxwell, chief strategy officer at VT Markets, said that hotter-than-expected inflation could push both US Treasury yields and the dollar higher, making it harder for gold to hold its value.
A softer inflation print, however, could have the opposite effect by pulling yields and the dollar lower, giving gold some support.