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Gold climbs above $4,400 as US inflation cools
XAU/USD bounced off $4,362 daily lows and traders increased odds for a September hold after CPI matched estimates, with more data due including PPI and jobless claims.
Gold prices rose more than 1% on Wednesday, moving above $4,400 after US inflation data aligned with expectations and reduced pressure for additional Federal Reserve tightening, FXStreet reports.
XAU/USD last traded above $4,400 after bouncing from daily lows near $4,362. Bullion extended gains as markets shifted toward a September rate hold, with money markets moving from a 52% chance of a hike to 60% for keeping rates steady, according to Prime Terminal data cited in the report.
The CPI and core CPI readings both edged down, with July CPI at 3.5% year over year, down from 3.6%, and core CPI easing from 2.6% to 2.5% year over year. The report also notes oil rose nearly 24% in July, while gasoline prices fell for a second straight month.
Looking ahead, traders are set to focus on the US Producer Price Index for July and Initial Jobless Claims. The report adds that if unemployment claims rise, it could increase downside risks to the labor market and push the unemployment rate higher, factors that could further influence gold’s near term direction.
Latest closeGold $4,467.10 ▲1.9%|Gasoline (RBOB) $2.882 ▼8.1%