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🟡 GOLD TODAY: XAU/USD UNDER PRESSURE AS FED HIKE BETS RISE
Gold is facing renewed selling pressure on Monday, August 31, as traders reassess the Federal Reserve’s interest-rate outlook following hawkish comments from Fed Chair Kevin Warsh at Jackson Hole.
XAU/USD briefly dropped below $4,400/oz, reaching around $4,396, before recovering toward the $4,440–$4,450 area. (Reuters)
🔴 What’s Driving Gold Lower?
The main pressure is coming from rising expectations that the Fed could raise interest rates in September. Markets have significantly increased the probability of a hike following Warsh’s comments, pushing Treasury yields higher and making the U.S. dollar more supportive. Higher yields generally make non-yielding gold less attractive. (Reuters)
At the same time, renewed U.S.–Iran tensions have pushed oil prices sharply higher, with Brent crude moving above $90 per barrel. This creates a complicated situation for gold: geopolitical risk can increase safe-haven demand, but higher oil prices can also fuel inflation and strengthen expectations for tighter monetary policy. (AP News)
📊 XAU/USD Levels to Watch
Resistance: $4,472 → $4,500 → $4,600
Support: $4,400 → $4,350 → $4,300
A sustained break below $4,400 could expose gold to deeper correction, while a strong recovery above $4,472 would signal that buyers are returning.
Despite the short-term weakness, gold remains exceptionally strong on a monthly basis and is still heading toward one of its strongest monthly performances of the year. (Reuters)
⚠️ Market Outlook
Short-term: 🔴 Bearish / corrective
Medium-term: 🟡 Still structurally bullish
Key level: $4,400
Traders should closely monitor upcoming U.S. employment and inflation data because a softer economic picture could revive expectations for easier Fed policy and potentially give gold another bullish catalyst.
This article is for market information only, not financial advice.