Gold Nears $4,400 on Geopolitical Tensions and Investment Flows

Gold prices rose to near $4,400 on Wednesday as traders waited for US inflation data that could determine whether the metal's August rebound has further room to run. The recent geopolitical tensions have brought safe-haven demand back into focus.

The deadly Houthi attack on an Egyptian-owned vessel in the Red Sea and separate US military action against a ship heading towards Iran raised concerns about a broader escalation around major Middle Eastern shipping routes.

Gold is reacting through investor demand for defensive assets, which has additional support from investment flows. Global physically backed gold exchange-traded funds attracted about $3 billion in July, reversing some of the weakness seen earlier this year.