Gold is defending the $4,100 level early Friday, trying hard to capitalize on this week’s rebound from four-day lows of $4,022 even as tensions in the Middle East appear to have somewhat eased.
Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in.
Japan may be changing its intervention playbook, but that might not be enough to rescue the battered Yen. With USD/JPY hovering at four-decade highs, the currency’s weakness is being driven less by speculative pressure and more by a powerful structural force: the wide US-Japan rate gap.
Gold price (XAU/USD) reflects signs of softness on Thursday, trading 0.5% lower at around $4,056 during the Asian trading session.
Resurgent Middle East tensions put fresh pressure on the precious metal.
The Aussie Dollar remains unable to find sustainable upside traction, keeping its trade below the key 0.7000 yardstick for now. So far, the constructive tone should remain unchallenged while above its critical 200-day SMA.