Market comment on behalf of Konstantinos Chrysikos Head of Customer Relationship Management at Kudo.com
Gold was relatively firm early on Wednesday as a slightly softer dollar and steady U.S. Treasury yields limited pressure on the non-yielding bullion. Traders are keeping a close eye on this week’s inflation reports that will further shape Federal Reserve monetary policy bets and are likely to impact prices.
Japanese yields eased, offering additional support. Continued central bank buying also provided a floor, with China’s central bank adding 20 tons in August to its gold holdings, its largest monthly purchase since 2023.
However, the yellow metal could remain under pressure amid 60% odds of a September rate hike, in addition to potential tightening later on. On the geopolitical front, higher oil prices after renewed Middle East tensions kept inflation concerns elevated and capped the upside potential for the metal.
Looking ahead, Thursday’s PPI and Friday’s CPI are the main events ahead of the September 15-16 Fed meeting. A strong reading could lift yields and curb gold’s trajectory, while softer inflation may lead to a cut in rate hike bets and help the metal recover. Traders are also watching oil prices and developments in the Middle East, which remain a near-term risk.
Zaid Barem / ymm










