Gold reclaims $4,400 into the European session on a soft US Dollar, extending the Asia bounce from near $4,340. Upside may stay capped ahead of Thursday’s ECB and US PPI/CPI.
Gold (XAU/USD) builds on its intraday recovery from a one-week low and reclaims the $4,400 mark heading into the European session on Wednesday. The commodity, for now, seems to have snapped a three-day losing streak amid a weaker US Dollar, which remains depressed near its lowest level in over two weeks amid the Bank of Japan–inspired rally in the Japanese Yen. Hawkish central-bank expectations may still keep a lid on any meaningful appreciation for non-yielding bullion.
A 25 basis point ECB rate hike on Thursday is considered a done deal. Traders have fully priced in a BoJ rate hike at the September 17–18 meeting. The RBA is also weighing a potential rate increase later this month. Better-than-expected US NFP revived bets for a September Fed hike amid inflation risks from persistently higher energy prices. Strategists at BNY put expectation for a September hike back to over 60%.
Traders might also await US PPI on Thursday and CPI on Friday for cues about the Fed path.
This European-session stamp extends the earlier Asia bounce near $4,340. Prior tape: Tuesday’s gold EU slide below $4,400. Also CENTCOM five tankers.
Also see: Silver Rebounds Near $67.50 as USD Weakness Clashes With Rising Fed Hike Bets.
Also see: US Treasury Enlarged Longer-Term Buyback Hits ~$6B; 10y Yield ~4.85%, 30y ~5.30%.
Informational only. Not trading advice, signals, or a guarantee of any market outcome.
Written and fact-checked with AI assistance, reviewed by a human editor before publication.
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