Gold Price Stabilizes at $4,349 as Investors Await Key US Data and Fed Signals

The gold price held steady at around $4,349 an ounce on Friday, despite some fluctuations earlier in the week. The precious metal had climbed above the $4,400 mark before retreating as investors booked profits.

Gold prices were supported by softer-than-expected US inflation data, which strengthened expectations of Federal Reserve rate cuts. The US Consumer Price Index rose 3.4% in July, easing from 3.5% in June and meeting economists' forecasts. Meanwhile, the US Producer Price Index was unchanged in July as a decline in goods prices offset a rise in services costs.

The softer inflation data reduced the opportunity cost of holding non-yielding assets like gold, making it more attractive to investors. Expectations of a rate hike at the Fed's September FOMC meeting fell sharply to around 35% from about 65% earlier in the week, according to CME's FedWatch Tool.

A stronger US dollar capped the upside in bullion, putting pressure on gold prices. The dollar index was up around 0.4% for the week, making the metal more expensive for holders of other currencies and reducing its appeal.