Gold holds near USD 4,400, having traded as high as USD 4,442 during the Asian session, with the market caught between renewed strength in crude oil, rising bond yields and a softer dollar. Ongoing Gulf tensions are keeping oil prices volatile, and today’s renewed strength is feeding into higher inflation expectations and Treasury yields, weighing on bullion. Algorithmic trading is likely amplifying this relationship, with the negative yield impact only partly offset by dollar weakness, particularly against the Japanese yen.

Beyond these short-term cross-market moves, most developments this week are likely to remain sideshows ahead of the US CPI and PPI releases, which will be critical in shaping expectations for the Fed’s September meeting. Meanwhile, underlying demand remains supported by central-bank buying, with the People’s Bank of China adding the most gold to its reserves since 2023 in August, marking a 22nd consecutive month of purchases.