Tai Wong Notes Gold Strength as Prices Rise Amidst Middle East Conflict and Upcoming Fed Decision
Spot gold rose on Friday as investors assessed the implications of the Middle East conflict on inflation. Tai Wong, an independent metals trader, noted that while gold feels ready to move higher, it remains capped by a strong U.S. dollar and rising yields. Gold prices were supported by dip-buying earlier in the week, with spot gold trading near $4,060.47 per ounce. Simultaneously, Brent crude oil prices retreated from a spike above $100 a barrel, settling near $96.78. This pullback followed a period of high volatility caused by Houthi threats against Saudi-linked shipping in the Red Sea. Markets are currently pricing in an 80% chance of a U.S. rate hike in September, while traders await the Federal Reserve's policy meeting next week. Broader market activity showed mixed results. North American equities closed mixed, with the Dow Jones Industrial Average gaining 0.5%, while the technology shares remained under pressure. European equities closed higher as oil prices fell back from their recent highs.