Gold Holds Steady at $4,400 as US Dollar Weakness Continues

The gold price is struggling to break above $4,400 but remains in a bullish position. The US Dollar weakness, fueled by reduced expectations of a September interest rate hike and cooling inflation, has given gold buyers an advantage.

The University of Michigan's Consumer Sentiment Index dropped to 51.0 in August from 55.2 in July, leading markets to price in just a 30% chance of a Fed rate increase next month. This reduced hawkishness is countering the uncertainty surrounding the US-Iran peace deal and the reopening of the Strait of Hormuz.

However, oil prices have surged on the latest news that Israel resumed airstrikes against Lebanon, potentially reviving inflation concerns. Gold's daily technical setup remains constructive, with a bullish bias intact as spot stays above the 21-day and 50-day SMAs while hovering just over the 100-day SMA at $4,385.88.