XAU/USD FUNDAMENTAL BACKDROP
Gold looks to test July swing lows today after yesterday’s U.S. inflation ‘hangover effect’ seems to have dissipated. The U.S. dollar is bid once more weighing negatively on bullion due to renewed market anticipation of a large interest rate hike by the Federal Reserve next week. Money markets have even gone so far as to increase the probability of a 100bps rate hike to 30%!
