Gold Surges to Near $4,400 as US Dollar Weakens Ahead of Inflation Data
Gold prices have rebounded to near $4,400 in early Asian trading hours on Thursday, snapping a three-day losing streak. The precious metal is gaining ground as the US Dollar (USD) weakens.
The market is bracing for key inflation data releases later this week, which may provide clues on the Federal Reserve's next interest rate decision. According to the CME FedWatch Tool, there is a 60% chance of an interest rate hike at the central bank's policy meeting next week.
TD Securities notes that gold remains sensitive to incoming data and headlines, with inflation data being the next big catalyst. The bank warns that an upside surprise would embolden Fed pricing and weigh on gold, while less worrisome inflation could lead to a new wave of discretionary positioning in the market.