Gold Dips on Fed Bets, But Bullish Outlook Persists

Gold prices dipped on Wednesday after the latest US inflation data prompted traders to increase their expectations for a Federal Reserve interest rate hike next month.

The spot gold price fell around 1% to about $4,610 per ounce, nearly erasing its gains for the week. However, gold has been steadily recovering since August and remains up around 14% over the past month.

Analysts at Zaner Metals believe that gold's recent price action was simply some profit-taking before the data release, while others see potential for further growth in the coming months.

Citi raised its three-month gold price target to $4,800 per ounce earlier this week and TD Securities analysts remain bullish on the metal's prospects. According to them, precious metals are finding comfort in their higher range.