Gold near $4,400 as rate-hike odds shift and Middle East tensions persist
Gold trades just below $4,400/oz as investors weigh mixed US data that cuts expectations for a September Fed hike and monitor renewed Middle East tensions tied to Israel–Lebanon strikes and Iran sanctions.
Gold traded just below $4,400 an ounce on Monday, holding steady as investors weighed subdued US economic data that reduced expectations for an imminent Federal Reserve rate hike against persistent tensions in the Middle East.
Data released last week pointed to tame US inflation, while consumer sentiment and retail sales weakened.
Markets now see roughly a one-in-three chance of a Fed rate hike in September, down from nearly 50% before the data.
Investors are now awaiting the FOMC’s latest meeting minutes and Fed Chair Kevin Warsh’s speech at the Jackson Hole symposium for further guidance.
Meanwhile, tensions in the Middle East remain elevated after Israel launched fresh strikes on Lebanon over the weekend, while President Donald Trump is preparing new economic sanctions aimed at forcing Iran to surrender.
Still, Middle Eastern producers are covertly moving millions of barrels of crude through the Strait of Hormuz.