The recovery in the US Dollar (as measured by the DXY Index) following the disappointing August US Nonfarm Payrolls report has assisted in taking some of the luster off gold prices over the past week. Because the anticipated slowdown in both fiscal and monetary stimulus out of the United States has arrived – pandemic-era unemployment benefits have expired, and the Federal Reserve's taper announcement appears to be on the horizon – the once-promising fundamental backdrop for gold prices appears to be in the rearview mirror. Beyond the possibility of a stalemate in the United States debt ceiling debate (similar to 2011), there appear to be few positive catalysts for gold prices over the next few months, according to the most recent data. The release of the Consumer Price Index (CPI) for the United States is expected to have an impact on the US Dollar during the Federal Reserve's blackout period, as the central bank prepares for a temporary rise in inflation. The release of the Consumer Price Index (CPI) for the United States is expected to have an impact on the US Dollar during the Federal Reserve's blackout period, as the central bank prepares for a temporary rise in inflation. As a result of the weaker-than-expected Non-Farm Payrolls (NFP) report, the US Dollar Index (DXY) has cleared the opening range for September. However, the Greenback may face headwinds ahead of the Federal Open Market Committee (FOMC) interest rate decision on September 22, as inflation is expected to slow for the first time this year. As a result of the weaker-than-expected Non-Farm Payrolls (NFP) report, the US Dollar Index (DXY) has cleared the opening range for September. However, the Greenback may face headwinds ahead of the Federal Open Market Committee (FOMC) interest rate decision on September 22, as inflation is expected to slow for the first time this year. Gold's declines during the first full week of September were not solely due to the strength of the US dollar, however.
