Gold Struggles to Rebuild Momentum Amid Rising Interest Rate Expectations
The gold market has been experiencing a lack of momentum in recent sessions, with price action registering only a modest move of around -0.36% over the last four trading days.
This neutral behavior is largely due to the competition from alternative markets such as bonds, which have regained attractiveness following the latest U.S. CPI data release.
The inflation figures came in at 3.4% year-over-year for August, with Core CPI matching expectations at 2.4%, indicating that price pressures remain persistent and above the Federal Reserve's target of 2.0%.
This development has led to a shift in market expectations, with the probability of the Federal Reserve raising its benchmark rate to 4.00% increasing to nearly 86%, from around 70% just a day earlier.