Gold Price Forecast: Will Fed Rate Hike Risk Break $4,300 Support?
By:
Key Points:
- Strong US economic data keeps the risk of a September Fed rate hike alive and pressures gold.
- A break below $4,300 could push gold toward the major $4,000 support.
- A move above $4,530 could open the way toward $4,800-$5,000.
Gold (XAU) ended near $4,429 last week as strong US economic data increased expectations of a rate hike in September. The positive movement in US Treasury yields has added pressure on the metal. The rising oil prices may also keep inflation elevated. The upcoming CPI and PPI reports may decide the next move in gold. In my opinion, gold must consolidate further before finding the next direction as the market is still uncertain about the interest rate path. This article discusses the key drivers, market risks and technical levels that could shape the next move in gold.