Now Reading: Gold Surges Past $4,400 Ahead of US Inflation Data
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Gold Surges Past $4,400 Ahead of US Inflation Data
Gold has climbed to a two-month high above $4,400 an ounce as traders await a key US inflation report that could signal the Federal Reserve's next move on interest rates. Bullion advanced…
The Story in Brief
Gold has climbed to a two-month high above $4,400 an ounce as traders await a key US inflation report that could signal the Federal Reserve's next move on interest rates. Bullion advanced 0.5% to $4,410.92 in Singapore trading, following a 3.6% gain over the previous two sessions. Technical buying was triggered after the metal broke through its 100-day moving average on Monday.
The US consumer price index due Wednesday is expected to show a 0.1% rise in July. A softer reading could ease inflation fears at the Fed, but higher energy prices might push the central bank toward a rate hike, a negative for gold. President Donald Trump's hardening stance on Iran has also reduced chances of a deal to reopen the Strait of Hormuz, adding to uncertainty.
The Indian Opinion
The usual chorus calling gold a 'safe haven' is missing the point. This rally is driven by technicals and shifting trader perceptions, not fear of war or inflation alone. The narrative that a rate hike will always crush gold is lazy, if the US economy strengthens, demand for bullion may hold. The real test is Wednesday's CPI number: if it comes in hot, will gold hold above $4,400, or will traders flee? That will settle whether this is a genuine new cycle or just a brief spike.
Source: livemint.com
This story was synthesised by AI from the source linked above.
