Gold Edges Higher as Soft US Inflation Data Dims October Rate Hike Bets

Gold prices rose on Thursday after a softer-than-expected US inflation report tempered expectations for a Federal Reserve rate hike in October.

The spot price of gold increased by 0.5% to $4,175.19 per ounce, while US gold futures for December delivery gained 0.4% to $4,204.80.

US inflation rose less than expected in August, with price pressures revised lower for the prior month.

The data reduced expectations of a rate hike in October from 45% to 38%, but traders still see a 97% probability of an increase in December.

Ilya Spivak, head of global macro at Tastylive, noted that 'incoming data is going to be important... to see how the market deals with it and shapes rate-hike expectations.'