Gold prices rose near $4,450 as softer US economic data reduced expectations for Federal Reserve tightening. At 20:44 ET, XAU/USD rose 0.3% to $4,429.49 an ounce. Softer US economic data has reduced expectations for another Federal Reserve rate increase, weakening the dollar and supporting gold.
Market Context
Gold has added about 1.5% over the past two sessions, rebounding from the $4,000-an-ounce area. Interest-rate swaps no longer fully price another Fed rate increase before the end of the year.
Geopolitical Factors
Renewed Middle East tensions and regional uncertainty have added to gold's demand, despite higher Treasury yields. China's renewed investor appetite and stronger central-bank buying have also supported gold's recovery above the $4,000 threshold.
Technical Analysis
Gold's rebound has taken it back toward its 100-day moving average. Tony Sycamore, senior market analyst at IG, said gold may be forming a base around the late-June low near $3,942, and needs to clear downtrend resistance around $4,440-$4,450 before breaking above the 200-day moving average near $4,503.