Dovish Vibes Push EMA, Beware of Hawkish PPI
Gold prices continued to strengthen, supported by hopes of a Fed rate cut in September and a weakening dollar, which maintained the appeal of non-interest-bearing assets. As of this morning's Asian session, spot gold was trading around US$3,357.65/oz, while December futures were near US$3,406.80. Analysts believe a consistent break above US$3,400 has the potential to trigger a further rally, supported by trending lower Treasury yields.
Expectations for easing intensified after a series of benign US inflation data, followed by comments from US Treasury Secretary Scott Bessent, who pushed for a 50 basis point cut at the next meeting. Projections from major financial institutions also point to several interest rate cuts through 2026, confirming the view that monetary policy is shifting toward a looser direction. This combination pushed the dollar index to multi-week lows and provided a boost to the precious metal.
Nevertheless, gold's intraday movement remains sensitive to DXY dynamics ahead of the release of the Producer Price Index (PPI) and other US data that will determine the Fed's direction. At one point, the dollar rebounded from daily weakness, paring some of gold's gains—indicating the market remains data-dependent. If the PPI softens again, the opportunity for a retest of the US$3,400 area opens; conversely, a hawkish surprise risks triggering a correction to nearby support.
Beyond US macro factors, the market is also monitoring safe-haven flows and the performance of other precious metals: silver is hovering around US$38.5/oz, while platinum and palladium are moving mixed. For now, the bias on gold is likely to be positive as long as the dollar doesn't rebound sharply and bond yields remain depressed.
Source: Newsmaker.id
