Gold climbed $67 to $4,434, edging just above the weekly high set a day earlier. An in-line CPI report cooled talk of a Fed rate hike and weakened the dollar, extending a rally that has added nearly 10% to gold since August 5.
Gold pushed to a fresh weekly high, touching $4,434 as the dollar softened. The metal has gained nearly 10% since August 5 on a run of strong sessions, and Friday's non-farm payrolls report added to the softer run of US data behind the move.
CPI report eases rate-hike pressure
The latest CPI print matched estimates, reinforcing that the Fed is in no rush to hike rates. That reading triggered broad, modest dollar selling, and gold touched a session high of $4,440 moments after the data landed. Traders also pointed to reported US intervention in the yen market to weaken the dollar, with rumors circulating of Treasury selling and Bessent stepping in — a dynamic seen as bullish for gold if the US is actively pushing for a weaker currency.
Oil and fiscal risks cloud the outlook
Geopolitical risk cuts both ways for gold. A peaceful resolution on the war front would be the best outcome, but the US appears stuck without a clear path out, and any drawdown of strategic reserves could spark a fresh spike in oil prices. Saudi Aramco's Q2 call flagged that global oil demand has stayed resilient partly because strategic and commercial inventory withdrawals have masked the supply shock. Higher oil prices, in turn, could pressure some countries to sell gold reserves to stabilize currencies or fund imports.
Separately, the Trump administration this week floated a capital gains tax cut, likely delivered through indexation. Such a move could prove politically popular, but it would also widen the deficit and highlight the lack of serious appetite in Washington for reining in government debt.
The long-term case for gold remains strong, though the metal still has a long road back to its all-time highs near $5,500 — with $4,500 marking the next barrier along the way.
Source: InvestingLive
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