All Eyes on Fed Meeting and Critical US Data in the Gold Market
Following a volatile course after the US inflation data, the gold market is awaiting upcoming economic indicators and Fed decisions.
Gold prices focused on critical economic developments in the new week following sharp fluctuations triggered by the US inflation data. Markets are closely monitoring the Fed meeting scheduled for September 15-16 and the data to be announced.
Fluctuations in Spot Gold After Inflation
Gold prices experienced one of the sharpest movements of the past week immediately after the US inflation data.
Prior to the data, the ounce price of gold, which was around $4,335, initially dropped to $4,292 in reaction.
Recovering all of its losses, gold climbed above $4,360 and maintained the $4,350 range toward the end of the week.
Fed Meeting and Interest Rate Expectations
At the center of the new week is the critical Fed meeting to be held on September 15–16.
In futures markets, the probability of a 25 basis point rate hike has risen to around 87 percent.
The Fed's current interest rate range stands at 3.50–3.75 percent, and this rate will change if a hike occurs.
Economic Data to Be Released on Wednesday, September 16
The first development gold investors will await on September 16 will be the US August retail sales figures at 15:30 TSI.
The Fed's interest rate decision will be announced at 21:00, and Fed Chair Kevin Warsh's statements will be released at 21:30.
Other Data to Watch for the Rest of the Week
On Thursday, US housing starts, the Philadelphia Fed manufacturing index, and weekly jobless claims will be monitored.
On Friday, US August industrial production data will be shared with the public.
Factors Pressuring Gold Prices and Critical Levels
The rise in oil prices and the US 10-year Treasury yield approaching the 5 percent threshold are creating pressure on gold.
While the $4,300 level has turned into a defense line, surpassing the $4,400 to $4,425 region is awaited.