Gold Price Slips as US PCE Inflation Keeps Fed Rate Hike Bets in Check

Gold Price Slips

Gold (XAU/USD) trades around $4,620 on Wednesday at the time of writing, down 0.83% on the day. Bearish pressure on the precious metal strengthens modestly following the release of the Federal Reserve’s (Fed) preferred inflation gauge, although the data do little to alter market expectations for the central bank’s September meeting.

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Gold Holds Firm as Fed Minutes and Iran Risks Keep Markets Cautious

Gold Prices

gold price outlook: Gold (XAU/USD) remains at elevated levels as lower Treasury yields and the US Treasury’s larger debt buyback plan provide support. However, the Federal Reserve’s concerns about persistent inflation could limit further gains. Geopolitical tensions involving Iran and uncertainty around the Strait of Hormuz also remain in focus. The technical structure stays positive after gold turned higher from the lower wedge support. Markets will now focus on Fed policy signals and geopolitical developments for the next direction.

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Indian Rupee Under Pressure as RBI Tightens Liquidity

Indian Rupee Under Pressure

BNY’s Geoff Yu notes that India’s bonds sold off after the Reserve Bank of India (RBI) unexpectedly advanced closure of its special Dollar deposit window to end-August. The change reduces anticipated Indian Rupee (INR) liquidity, lifts 5-year and 10-year yields, and may slow reserve accumulation and Rupee appreciation as authorities grow wary of future liabilities and forward-premium costs.

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