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fxAug 17, 2026, 6:38 AM

Gold holds recovery as weak US data dampens Fed tightening bets

Softer US retail sales, weaker consumer confidence, and easing inflation signals are reducing expectations for tighter Federal Reserve policy and supporting gold's recovery.

XAUUSD

Gold is holding its recent recovery, with XAU/USD supported by a run of softer US economic data. Retail sales came in weak, consumer confidence fell, and inflation signals eased, reducing market expectations for tighter Federal Reserve policy.

As a result, the US dollar has limited support, helping the precious metal sustain gains. The softer data backdrop suggests the Fed may be less aggressive, which is typically supportive for non-yielding gold.

Source: FXStreet Forex News