Gold Holds Steady at $4,428 as Traders Price in September Rate Hike

Gold prices have been holding steady at $4,428 as traders price in a 66% chance of a September Fed rate hike. The current market sentiment is bearish for gold due to hawkish remarks from Fed Chairman Kevin Warsh and rising global bond yields.

The upcoming U.S. labor market data, including the non-farm payroll report on Friday, will be a key catalyst for gold prices. A strong labor market could lead traders to think that the Fed can continue hiking rates, which would negatively impact gold.

Despite the bearish technical setup, the broader bull case for gold remains intact due to low inflation and fiscal-risk-related buying. Central banks and institutional investors have been adding to their gold holdings in recent months, providing a floor for prices.