Gold Prices Rise as Middle East Tensions Decrease

Gold prices continue to rise as tensions in the Middle East decrease and hopes for a US-Iran deal reduce inflation and Fed tightening risks. This has led to a reduction in gold's downside potential, but the upcoming release of the US CPI report next week could erase these gains if it shows high inflation rates. The Federal Reserve will be closely monitoring this data as they make their decision on interest rates at the September FOMC meeting.

The latest jobs numbers for August are also being released today, but they are not expected to have a significant impact on gold prices. A hot CPI report would likely lead to increased bets on rate hikes, causing gold prices to fall. On the other hand, a soft report would reduce the risk of Fed tightening and give gold another boost.

From a technical perspective, gold has broken above key resistance levels and is now heading towards the 4,500 level. However, if it reaches this level, sellers may step in to push prices back down to the 3,885 level.