Gold Clings to $4,000 as Oil Tops $80 and September Fed Hike Odds Hit 56%
Updated
Updated · Kitco NEWS · Jul 17
Gold Clings to $4,000 as Oil Tops $80 and September Fed Hike Odds Hit 56%
3 articles · Updated · Kitco NEWS · Jul 17
Summary
$4,017.30 spot gold ended the week down 2.5%, with traders again defending the $4,000 level after four breaks below it in the past four weeks.
Oil back above $80 and the renewed Strait of Hormuz closure have revived inflation fears, lifting the dollar and Treasury yields even after June CPI showed a sharp slowdown in consumer-price growth.
Analysts say a clean break below $4,000 could send gold toward $3,950 and $3,900, while markets now price a 56% chance of a Fed rate hike by September.
Even so, several analysts argue gold's nearly 30% drop from its January record has already absorbed much bad news, with central-bank buying and geopolitical risk still supporting the longer-term trend.
With little U.S. data due next week, markets are expected to react mainly to Iran-war headlines and the ECB meeting, where rates are seen unchanged but a September hike may stay in play.