Gold nears two-month high around US$4,400 as traders weigh US Fed interest-rate path
Risk of monetary tightening remains as oil prices climbed after the US threatened to impose economic measures on Iran
Published Mon, Aug 17, 2026 · 07:55 AM
GOLD edged towards a two-month high around US$4,400 an ounce as traders weighed the US Federal Reserve’s interest-rate path after the US economy’s main engine showed signs of cooling.
The latest US data showed declines in both consumer sentiment and retail sales, helping ease fears of an imminent rate hike, which is typically a headwind for non-yielding bullion. Still, the risk of monetary tightening remains as oil prices climbed after the US threatened to impose economic measures on Iran.
US Federal Reserve Bank of Chicago President Austan Goolsbee said he is encouraged by a recent cooling in inflation, but wants to see more of the same in coming months to be sure it is falling back to the US central bank’s 2 per cent target.
Earlier, data showed the University of Michigan’s preliminary August sentiment index slid to 51 in August. The median forecast from a Bloomberg survey of economists had projected 55. Meantime, US retail sales dropped in July by the most in more than a year.
Gold’s recovery above the key US$4,000-an-ounce threshold in recent weeks has been driven by renewed investor appetite and an increase in central bank purchases, notably from China.
Gains in the week ended Aug 16 took the metal above its 100-day moving average for the first time since April, although it has since returned below the threshold.
“The macro setup has turned more constructive, although positioning is less supportive and technical momentum is starting to look stretched after the recent rebound,” said OCBC strategist Christopher Wong in a note. “Consolidation risks remain around current levels.”
Spot gold traded 0.6 per cent higher at US$4,374.24 an ounce at 4.33 pm in New York on Aug 16 (4.33 am in Singapore on Aug 17). Silver rose 0.3 per cent to US$64.66 an ounce. Platinum and palladium both gained. The Bloomberg Dollar Spot Index, a gauge of the US currency, slipped 0.2 per cent. BLOOMBERG
