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Gold climbs back above $4,400 as traders await US CPI cues

The move comes as geopolitical tensions keep oil supported near a one-and-a-half-week high, feeding inflation-risk expectations ahead of the US CPI release.

Reported · Written up by our desk · Major Pairs

Gold (XAU/USD) attracted fresh buyers in Asia and climbed back above $4,400, moving closer to its highest level since June 5 after topping it the prior day, according to FXStreet.

Traders are now turning to the US Consumer Price Index report for signals on the Federal Reserve’s next policy steps, with inflation risks also tied to volatile oil prices and a still-elevated geopolitical risk premium.

Oil prices were holding near a one-and-a-half-week high as hopes of a quick reopening of the Strait of Hormuz faded, FXStreet reported, after an Iranian Supreme Leader aide said the waterway would not open until the US meets Tehran’s demands, and Iran-backed Houthi attacks escalated on vessels in the Red Sea and Bab el-Mandeb.

FXStreet added that CME Group’s FedWatch tool still shows traders pricing in more than a 75.0% chance of at least one US rate hike by the end of the year, while North Korea’s recent ballistic missile launch and ongoing regional tensions add to risk sentiment.

Latest closeGold $4,430.80 ▲1.6%

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