If the US Producer Price Index (PPI) data released later tonight increases investor concerns that the Federal Reserve will raise interest rates by more than a quarter percent before the end of the year, investors should rapidly increase their cash-out in the gold market to avoid the risk of rising interest rates, putting significant downward pressure on gold prices.

Furthermore, the US Treasury announced it will repurchase up to $6 billion in long-term bonds on Thursday (September 10th). Although this is larger than the previously announced $4 billion, it is still a relatively small proportion compared to the overall low-yield long-term bond market. Therefore, US long-term bond prices have fallen again, leading to higher yields. The continued rise in long-term bond yields should further strengthen investors’ concerns about the inflation outlook, further dragging down gold prices and hindering their upward momentum.

Gold prices may fluctuate between $4,363 and $4,442 in the short term. Pay close attention to the potential entry opportunities at the higher end of the range. There is room for a pullback in the short term, and $4,462 can be used as an important price support level. Be sure to take appropriate risk precautions.

Risk Warning: This article is for market analysis purposes only. Price ranges and levels mentioned are for market observation and do not constitute investment advice. Precious metal prices are highly volatile; please make independent and prudent decisions and manage your own risk.

Gold price chart (1 hour):

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com