Gold Dips as Fed Hike Bets and Weaker Oil Curb Price Gains
Gold prices dipped on Monday as investors weighed the prospect of further Federal Reserve rate hikes and a firmer US Dollar. The metal slipped to around $4,360 in US hours, down nearly 0.40% on the day. However, losses were limited by softer oil prices, which kept US Treasury yields below last week's multi-year highs.
The Fed's recent 25-basis-point rate hike has supported the Dollar and kept yields elevated, with markets pricing a 62% probability of another interest rate increase in October. West Texas Intermediate (WTI) crude oil stood near $92.85, its lowest level in more than a week, as diplomatic efforts in the Middle East pressured crude prices.
Gold traders should adopt a range-bound strategy for the coming weeks, according to market analysts. With the Relative Strength Index (RSI) sitting near 51 and the MACD flat, there is a clear lack of directional momentum. Traders are advised to focus on short-term options strategies like iron condors to capitalize on this temporary pause.