Gold rebounded on Tuesday as lower oil prices supported the metal, while the Middle East conflict kept inflation and rate-hike worries alive. Traders now wait for U.S. consumer price data, and technical buyers defended the 100-hour and 200-hour moving averages.
Gold prices rebounded on Tuesday as a dip in oil supported bullion. A widening conflict in the Middle East still raised concerns over energy supply disruptions, persistent inflation and further interest-rate hikes.
At 04:47 ET, spot gold had risen 0.1% to $4,177.70 an ounce, while futures gained 0.2% to $4,200.34 an ounce. Oil fell after Russia said its diesel exports may exceed volumes announced under a supply deal with the U.S.
Inflation fears weigh on the metal
Oil remained elevated, however, because recent attacks by Iran-backed Houthi forces on Riyadh's international airport kept concerns about flows out of Saudi Arabia alive. Gold has fallen around a fifth since the U.S. and Israel launched a joint assault on Iran in late February, reflecting fears that the conflict will drive up inflation and tighten monetary policy.
Traders now look to fresh U.S. consumer price data due Wednesday. The Fed raised rates for the first time since 2023 in September, and interest-rate swaps imply only a roughly 20% probability of another increase at the October meeting. Meanwhile, the U.S. dollar index fell 0.3% to 102.33.
Buyers defend the hourly averages
Technically, Investinglive's Greg Michalowski wrote that gold buyers defended the area near the 100-hour and 200-hour moving averages after Kazakhstan reportedly sold some of its reserves. The price has since bounced to near $4,184.
The two averages sit almost on top of each other at $4,157.82 and $4,157.78, making $4,158 the immediate support level. Above, the next hurdle is the swing area between $4,223.51 and $4,237.55, followed by the 100-day moving average at $4,252.80.
Sources: Investing.com, Investinglive
Trading involves risk.
Risk Disclaimer
