Gold Hits $4,090 as US Inflation Data Eases Rate-Hike Fears

The question now is whether gold can hold above $4,000. The metal has tested that level twice in the past month and failed both times. Friday's close was the first sustained break. A repeat of the pattern – a quick spike followed by profit-taking – would keep the range intact. A second weekly close above $4,000 would signal a genuine regime shift.

Silver's $59 handle is the highest since early 2024. Industrial demand from solar manufacturing and electronics has tightened physical supply, and the metal tends to amplify gold's moves in both directions. If gold holds, silver could test $60. If gold rolls over, silver's 2.2x beta to gold means a sharper pullback.

For Indian buyers, the rupee's weakness against the dollar adds a layer of cost. The local currency has slipped about 1.5% this quarter, which means imported gold gets more expensive even when dollar prices are flat. Friday's rally pushed domestic 24-karat prices above ₹1,44,000 for the first time this month.

Watch the U.S. PCE print due Friday. That's the Fed's preferred inflation gauge. A repeat of the soft CPI reading would reinforce the case for a September cut and likely push gold toward $4,200. A hot number would test the $4,000 floor.