Gold price wilts as Oil shock puts CPI in Fed crosshairs - Mitrade

AI desk brief

Gold (XAU/USD) is under pressure, down 0.44% to $4,393 as Middle East tensions push WTI up 1% to $92.10/bbl and traders position for Thursday’s PPI and Friday’s CPI. The market is pricing a 63% chance of a 25 bp Fed hike next week; hotter-than-expected CPI at 0.4% MoM / 3.4% YoY would likely reinforce hawkish repricing and keep bullion on the back foot.

Technically, gold has fallen for a third straight day and is testing the 100-day SMA at $4,346, with downside targets at $4,300, then $4,282 and the 50-day SMA at $4,254. Upside resistance sits at $4,400, then $4,450 and $4,500, while the 10-year yield is flat at 4.788% and the DXY is little changed at 98.86.