Gold Hovers Near Two-Month Highs Ahead of Producer Price Data
Gold prices hovered 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 rates on hold in September.
The spot price of gold steadied around $4,409 an ounce after briefly rising about 1% to its highest level since June 5. December US futures were near $4,467.
The metal has gained sharply since August, driven by softer labour-market data and a weaker rate outlook.
Analysts say a softer July producer price reading would reinforce the idea that pipeline inflation is easing, pushing Treasury yields and the dollar lower, classic tailwinds for bullion.
Technicals are also becoming more important after gold's rapid rebound. Saxo Bank analysts see the 200-day moving average near $4,500 as the next major hurdle.
A sustained break above $4,500 would become a credible target if producer prices validate the CPI signal from last week's consumer-price report.