Gold Prices Rebound as Inflation Fueled Rate Hike Bets

Gold prices rose by almost 2% to near $4,400 an ounce on September 10, despite hotter-than-expected inflation data that could prompt a Federal Reserve rate hike.

The consumer price index release showed inflation above expectations, leading traders to increase bets on a rate hike next week. Typically, higher rates are a headwind for gold, which doesn't pay interest.

Bullion initially dipped after the CPI release but quickly reversed its move and pushed higher.