Gold Prices Recover as US Inflation Data Looms
Gold prices have been recovering from one-week lows near $4,350 and are now trading above $4,400. The upcoming US inflation data is expected to be a key catalyst for gold's price movement.
The US Treasury Department has announced that it will raise its bond buybacks to up to $6 billion for an operation on Thursday, which has helped revive buying interest in the non-yielding bullion.
However, the US Treasury's intervention has not been enough to impress US Dollar (USD) buyers, and the Greenback faces headwinds from renewed expectations that the Federal Reserve will hold key interest rates steady at its monetary policy meeting next week.
About 70% of economists expect the Federal Funds Rate to remain in the 3.50%-3.75% range next week, which could be a positive sign for gold prices.