Gold Edges Up 0.4% Ahead of US Inflation Data
Gold edged up 0.4% in yesterday’s trading session as markets focus on tomorrow’s US inflation data, which could offer insight into the Federal Reserve’s next move on rate cuts. Currently, the market is pricing in a 129% probability of a full rate cut, with a 29% chance of an additional cut, bringing the implied rate to 5%. The Consumer Price Index (CPI) for August is projected to show a year-over-year increase of 2.6%, down from July’s 2.9%, further strengthening the case for potential Fed easing.With the fundamental backdrop in mind, gold has been trading steadily around the $2,500 level, ranging between $2,484 and $2,524 over the past 16 daily sessions. Since breaking through the psychological $2,500 mark, the asset’s volatility has declined, reflected in the Average True Range (ATR), which has dropped from 42.0 to the current 29.0. With no significant economic data releases today and traders displaying uncertainty about future price direction, gold is expected to remain in a tight range, with support at $2,493 and resistance at $2,516.*Gold prices in the UAE today for the afternoon are as follows:*24 Carat – AED 303.00
22 Carat – AED 280.50
21 Carat – AED 271.50
18 Carat – AED 232.75
Last Updated on 6 months by News Desk 1
