Gold weekly high came back into focus on Wednesday after the CPI report matched estimates and helped lift bullion to $4,440.
Gold rose $67 to $4,434 and moved just above the weekly high set a day earlier. Moments after the inflation data, the metal touched a session peak of $4,440. Meanwhile, the report led to broad but modest selling in the US dollar.
The source article said gold has rebounded sharply since August 5. Since then, it has gained nearly 10% through a run of strong sessions. Softer US data helped that move, including Friday’s non-farm payrolls report. In addition, the CPI figures supported the view that there is no rush for the Fed to raise rates.
Gold Weekly High Back in View
The article also pointed to US action in the yen market as another support for gold. It said US intervention aimed to weaken the dollar. As a result, that backdrop added to the bullish case for the metal in the source report.
However, the source also cited market rumors around Treasury selling and Bessent. It did not present those claims as confirmed facts. Still, it said the idea of an actively weaker dollar was supportive for gold prices.
Other Factors Cited in the Rally
The source article mentioned war risks and oil prices as part of the wider gold story. It said peace would be the best outcome for gold, but added that the US faces a quagmire with no clear path out. It also warned that a fresh rise in oil prices could follow once strategic reserves are drawn down.
Additionally, the article referred to the Q2 Saudi Aramco conference call. It said the company highlighted a troubling dynamic. The source then said a material rise in oil prices could create new pressure to sell gold reserves to steady currencies or pay for imports.
Finally, the article noted that the Trump administration floated a capital gains tax cut this week, likely through indexation. It said such a step could widen the deficit further. The source added that gold faces a next barrier at $4,500, after noting all-time highs near $5,500.
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Source: InvestingLive
