XAU/USD ended Wednesday's trading session at its lowest price in three weeks, hitting a new low of $1,905 as the inflationary backdrop in the US continued to frustrate gold investors.
Gold continues to be rejected from $1,940.00 after last week's action saw the yellow metal fall back as US Treasury yields and the US Dollar (USD) continued to trouble scarf on the Gold chart. The precious metal has broken away from yearly highs above $2,060.00.
The US consumer price index (CPI) rose 0.6% in August, up sharply from 0.2% the previous month, and inflation concerns weighed on XAU/USD. Annual CPI increased 3.7% compared to market estimates of 3.6%.
Rising inflation in the US is causing the market to reassess the possibility that the Federal Reserve (Fed) will raise interest rates further, although the Fed seeks to keep interest rates stable at its interest rate meeting next week.
SL:1904
TP1: 1915
TP2: 1920