Gold Price Forecast: Fed Rate Hike Bets Rise as Oil and US Dollar Pressure Gold - Mitrade

AI desk brief

Gold is in a short-term correction, with spot briefly hitting about US$4,313/oz and later around US$4,352 after falling roughly 2% on Thursday; the immediate market focus is the US August CPI report and whether it confirms rising Fed hike odds. The article says money markets now price around a 70% chance of a 25 bp Fed hike, while the US 10-year yield is approaching 5% and the USD has firmed, both pressuring gold below the US$4,400 psychological level.

The key tactical range is US$4,300–4,400: a defended US$4,300 could stabilize XAU/USD and reopen a move back above US$4,400, while a break lower targets US$4,200. Medium term, the piece is constructive only if gold holds the US$4,200–4,300 area and then recovers above US$4,500; it flags geopolitical risk in the Middle East and oil above US$100/bbl as offsetting safe-haven support.