Gold Prices Hold Steady as Market Awaits US PPI Data for Rate Hike Clues
Gold prices remained steady near a two-month high on Thursday as market participants took a breather following a rally driven by easing US inflation. Spot gold was almost unchanged at $4,408.55 per troy ounce at 03:36 GMT, after earlier jumping around 1% to reach its highest level since June 5.
According to Tim Waterer, chief market analyst at KCM Trade, 'Gold is currently in a consolidation phase following its post-CPI gains, while expectations of a near-term Fed rate hike have eased again.' He noted that traders appear to be waiting for confirmation from the upcoming PPI data before deciding whether to push prices higher.
The release of US inflation data on Wednesday showed that the Consumer Price Index (CPI) rose 3.4% in the 12 months to July, down from 3.5% in June. This was in line with economists' expectations, according to a report from the US Bureau of Labor Statistics.