Gold has broken below $4,300 even as oil surges and tech stocks selloff, because oil-driven inflation risk is feeding a sharply more hawkish Fed outlook that’s overpowering haven demand—and whether Dollar Index confirms that same story now hinges on its 99.86 resistance.
GBP/JPY enters a back-to-back central-bank week with three independent arguments for a rebound—the BoE’s hawkish bloc has little room to retreat, a fully priced BoJ hike may give Yen no new information, and the pair is oversold at a two-layer technical support zone—creating an asymmetric setup where the bullish threshold is lower than the bearish one.
The US two-year yield has already broken out toward a broader Fed tightening path, but the Dollar hasn’t followed — this week’s FOMC decision and Summary of Economic Projections will determine whether the Fed validates enough of that path to finally close the gap.
Why a stronger-than-expected CPI print sharply raised September Fed hike odds without producing a Dollar, yield or oil breakout that actually held
What's happening: August...