Gold Holds Near Two-Month Highs as Investors Await PPI Data
Gold prices steadied near two-month highs on Thursday as investors awaited US producer-price data to confirm whether inflation is cooling enough for the Federal Reserve to keep interest rates steady in September.
The spot price of gold was little changed at $4,409 an ounce in early trade after briefly rising about 1% to its highest level since June 5. December US futures hovered near $4,467.
The metal has gained sharply since August, helped by softer labour-market data, a weaker rate outlook, and renewed investment demand.
Wednesday's consumer-price report gave gold bulls another reason to stay engaged, with US CPI rising 0.1% in July and 3.4% from a year earlier, down from 3.5% in June.
KCM Trade analyst Tim Waterer sees the pause as consolidation after the CPI-driven advance rather than a reversal in sentiment.