Gold Prices Fall Below Key Level as Fed Rate Hike Expectations Rise - News and Statistics - IndexBox

AI desk brief

Gold fell $77.20, or 1.72%, to $4,400/oz as the market increasingly priced a Fed rate hike at next week’s meeting. The metal broke below a key technical level after a surge in hike odds from 45% four weeks ago to 60/40 now, driven by stronger U.S. labor data and hawkish Fed commentary, even as the dollar softened slightly.

The inflation backdrop is being amplified by WTI above $93/bbl, with Brent nearing $100 on Middle East supply disruption fears, which is strengthening the case for tighter policy and weighing on bullion. Near term, Thursday’s PPI and Friday’s CPI are the main catalysts: hotter prints would likely keep pressure on gold, while softer data could trigger a rebound toward $4,474 and above. Technical support is cited near the 50-day moving average at $4,308; gold has slipped below its 100-day SMA but remains above the Ichimoku cloud.