FX.co ★ XAU/USD, GOLD

XAU/USD On the 4-hour chart, gold is trading just below the Bollinger midline near $4,706, with muted ADX readings indicating weak trend strength. Expectations for a Fed rate hike gain traction after the US CPI accelerated to its highest level since May 2023. Gold is trading cautiously lower on Wednesday due to pressure from a stronger US dollar and higher US Treasury yields. As the US CPI surged to its highest level since May 2023, expectations for a Fed rate hike gained momentum. Gold is trading close below the Bollinger median at $4,706 on the 4-hour chart, with muted ADX readings indicating a weak trend. At the time of writing, XAU/USD is trading around $4,687, posting modest intraday losses of roughly 0.55%. Higher energy prices brought on by supply disruptions in the Middle East continued to fuel US inflation, with the Producer Price Index (PPI) rising 6.0% YoY in April, up from 4.3% in March and above market expectations of 4.9%. Meanwhile, the core PPI excluding food and energy climbed 5.2% YoY, up from 4.0% previously and above forecasts of 4.3%. As of this writing, XAU/USD is trading at about $4,687, with slight intraday losses of roughly 0.55%. The Producer Price Index (PPI) increased 6.0% YoY in April, surpassing market estimates of 4.9% and rising from 4.3% in March due to higher energy prices brought on by supply interruptions in the Middle East. In the meantime, the core PPI—which does not include food and energy—rose 5.2% YoY, exceeding predictions of 4.3% and up from 4.0% before.