Gold Rebounds to $4,355 as Oil Drops 4%

Gold closed the session above $4,355.35. The metal gained ground as crude oil prices fell by 4%. Traders reacted to the drop in energy costs and stable U.S. inflation data. The U.S. inflation rate remained at 3.4% in August. Core inflation decreased from 2.5% to 2.4%. These figures matched analyst expectations. The probability of a Federal Reserve rate hike rose to 86.7%. This shift pressured gold in recent weeks. However, the oil pullback provided immediate support.

The 2-year Treasury yield climbed above 4.62%. The 10-year Treasury yield retreated toward 4.95%. Bond traders focused on the recent inflation reports. Gold failed to settle below the $4,300 support zone. It rebounded past the $4,350 level. A close above $4,400 would target the $4,480 to $4,500 resistance range. A break below $4,300 would test the 50-day moving average at $4,269. Further weakness could push prices toward the $4,160 to $4,180 area.

Silver climbs above $64

Silver prices exceeded the $64.00 mark. The U.S. dollar remained flat against a broad currency basket. This neutral dollar environment supported precious metals. Silver faces resistance in the $65.00 to $66.00 range. Settling above $66.00 would direct the metal toward the $70.00 level. A breakout past $70.00 would target the $71.00 to $72.00 zone. The Relative Strength Index remains in moderate territory. This leaves room for additional upside momentum if catalysts emerge.

Platinum tests key support levels

Platinum attempted to settle back above $1,800. Palladium markets rose by 2.4%, supporting platinum demand. Resistance is located in the $1,870 to $1,890 range. Platinum must hold above $1,780 to maintain its current position. A drop below $1,780 would open the path to the $1,700 to $1,720 support zone. The metal has recently experienced a strong sell-off. Traders are watching for a rebound in the near term.

Market drivers and outlook

Gulf countries plan to meet with Iran regarding the Strait of Hormuz. This diplomatic development contributed to the 4% drop in oil. Falling oil prices reduced pressure on precious metals. The source GN auto markets/commodities: silver prices notes this correlation. Gold remains sensitive to oil price dynamics. Bond market conditions have not fully stabilized. A significant oil pullback is required to lower yields further. Traders monitor these factors closely for the coming week.