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[BUSINESS] · United States, Iran, China · 18 sources

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Gold prices rise as US dollar weakens and Fed hike bets fade FAST-MOVING

Gold prices have extended a multi-day rally, climbing toward the US$4,400-US$4,500 range. This upward momentum is driven by a weakening US dollar and diminishing market expectations for further interest rate hikes by the Federal Reserve. Recent US economic data, including softer employment and inflation figures, have led traders to scale back bets on a September rate increase, with some tools suggesting only a 35% chance of a hike.

Geopolitical tensions in the Middle East are also influencing market sentiment. Escalating conflict between the US and Iran, including a naval blockade and threats of a fully offensive military posture from Iran, has bolstered gold's status as a safe-haven asset. Additionally, concerns over energy supply disruptions have pushed Brent crude oil prices above US$91 per barrel.

While gold faces headwinds from rising US Treasury yields, central bank buying—notably from China—and increased demand from investment funds like the SPDR Gold Trust have supported prices. Financial institutions like Wells Fargo have maintained a bullish long-term outlook on precious metals, despite revising near-term price targets downward due to elevated real yields.

Entities

Donald Trump · Federal Reserve · Gold · Iran · Kevin Warsh · Silver · Wells Fargo

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