Gold rebounds

Precious metals, led by gold, trade higher for a second day, supported by softer US economic data and lower oil prices, which have helped arrest the rise in bond yields. Additional support has come from a softer dollar, particularly against the Japanese yen, which is once again on intervention watch. While the market is pricing a more than 60% probability of a September rate hike, the question remains whether the Fed will tighten that close to the November midterm elections. For now, gold’s inverse correlation with oil prices and bond yields remains a key focus, sidelining other potentially supportive drivers. Fibonacci resistance is seen at USD 4,441 and USD 4,490.