Gold Holds Ground as Rate Hike Odds Plummet

The gold price recovered from an early slide to trade higher in New York on Friday, despite some profit-taking after reaching a 10-week high. The precious metal rose 0.3% to $4,435.00 an ounce for December delivery, with the Comex contract also touching $4,454.60 at its intraday best.

The move came as markets digested July's soft inflation data, which weakened the case for a September Federal Reserve rate hike. The odds of a rate increase have dropped to roughly one in three, down from over 40% a week earlier.

While some analysts expect gold to hold its ground, others see profit-taking as a normal response after a significant rally. BMI, a unit of Fitch Solutions, expects gold to average $4,400 an ounce for the full year.