Weaker Dollar Bolsters Gold as Oil Prices Hit $100
Gold prices are currently trading at approximately $4,414-$4,426 on Thursday. A weaker US dollar is contributing to gold's gain, particularly ahead of the release of the Producer Price Index (PPI) today and the Consumer Price Index (CPI) on Friday.
The market is split between a 60% chance of a September Federal Open Market Committee (FOMC) rate hike and a survey showing that 65 out of 93 economists do not see an increase. The outcome of these reports will significantly influence expectations for the FOMC meeting on September 15-16.
Brent crude oil prices above $100 are also posing a risk to gold, as higher oil prices can lead to increased inflation concerns and higher yields, ultimately putting pressure on gold. However, geopolitical tensions, particularly in the Middle East, are supporting safe-haven demand for gold.