Gold holds above $4,400 as Fed hike bets ease
Gold stays above $4,400 an ounce on Tuesday after two straight sessions, as markets scale back expectations for a Fed rate hike following weak US economic data.
Gold held above $4,400 an ounce on Tuesday after advancing for two straight sessions, supported by fading expectations for a Federal Reserve rate hike following a string of weak US economic data.
Markets now expect the Fed to keep policy unchanged in September and are no longer fully pricing in a rate increase by year-end, unlike just a week ago.
Investors are now awaiting the minutes of the Fed’s July meeting and comments from Chairman Kevin Warsh at the annual Jackson Hole symposium for further clues on the policy outlook.
Meanwhile, traders remained wary of inflation risks as prospects for a new agreement between the US and Iran dimmed after President Donald Trump said he was not interested in extending the interim peace deal.
Elsewhere, gold continued to benefit from stronger investment demand and ongoing central bank purchases, particularly from China.