Gold Prices Retreat Amid Inflation Data and Rate Hike Uncertainty

Gold prices retreated on Thursday as investors locked in gains after hitting a two-month peak following U.S. inflation data that was in line with expectations.

The data, which showed U.S. inflation rose 3.4% in the 12 months through July, down from 3.5% in June, tempered expectations for a Federal Reserve rate hike next month.

According to the CME FedWatch Tool, markets are now pricing a 35% chance of a rate hike at the September meeting, down from 40% immediately after the inflation data.

Said Bob Haberkorn, senior market strategist at StoneX: '4,500 is a big resistance point for gold. We touched it twice and gold tumbled from that point, with traders being jittery close to the 4,500-level at the moment.'