Gold Prices Soar as Investors Adjust Rate Hike Expectations

Gold prices surged on Wednesday as investors adjusted their expectations for higher US interest rates. The precious metal gained 0.6% to $4,391.82 per ounce, while US gold futures for December delivery increased 0.2% to $4,451.90.

The recent economic data has weakened the case for Federal Reserve rate hikes, with traders now seeing a 50% chance of a September increase. This is down from 60% before the release of weaker-than-expected US jobs data.

Investors are closely watching inflation figures, which could significantly influence expectations about the central bank's next decisions. The US Consumer Price Index was due later Wednesday, and any signs of changing price pressures would be particularly noteworthy.