Gold prices rose to a two-month high above $4,400 an ounce ahead of a crucial US inflation report, signaling potential shifts in Federal Reserve interest-rate policies, according to livemint.com. The metal gained 3.6% over the previous two sessions, reflecting renewed investor interest and technical buying.
The price increase was driven by gold breaking through its 100-day moving average on Monday, which attracted technical buyers and indicated a recovery phase. Additionally, there were increased inflows from gold-backed exchange-traded funds in China, further supporting the upward momentum, livemint.com reported. Hebe Chen noted that these movements suggest an early-stage shift into a new cycle for gold.
This rise in gold prices comes amid market anticipation of the US inflation data, which could influence the Federal Reserve’s stance on interest rates. The recent price action contrasts with earlier periods of volatility and dip-buying, highlighting a potential change in market dynamics. Gold’s performance is closely watched as a barometer for inflation expectations and monetary policy adjustments.
The next major market event is the release of the US inflation report, which traders expect to provide clearer signals on the Federal Reserve’s interest-rate decisions. Gold’s movement above $4,400 sets a benchmark for assessing investor sentiment in the coming sessions, according to livemint.com.