Gold Finds Support Below $4,400 as Traders Eye US CPI Data
Gold prices edged higher on Wednesday, finding buyers below $4,400 after the previous day’s pullback from multi-month highs. Gains were limited by expectations of further Fed tightening ahead of key US inflation data.
XAU/USD attracted dip-buyers during Asian trading on Wednesday, halting the retreat from the $4,435 region seen a day earlier. That level was the highest for gold since June, underscoring its recent strength.
The upside remained limited, however, as markets continued to price in a higher probability of a Federal Reserve rate hike. Traders adopted a cautious stance ahead of the upcoming US Consumer Price Index report, which could shift expectations for monetary policy.
With the metal holding above $4,400 but struggling to reclaim the recent peak, the short-term direction hinges on the inflation data. A hotter print would likely reinforce rate-hike bets and pressure gold, while a softer number could clear the path for a sustained breakout.
Source: FXStreet Forex News