Gold Prices Soar to 10-Week High as Investors Await US Inflation Data
Gold prices rebounded on Wednesday to reach a 10-week high as investors await key US inflation data that could reshape policy expectations.
The precious metal gained 0.6 per cent to $4,391.82 per ounce by 0535 GMT, while US gold futures for December delivery rose 0.2pc to $4,451.90.
Bullion climbed to its highest level in over two months before hitting technical resistance at the 100-day moving average around $4,387 and closing lower for the second time this month.
Kelvin Wong, a senior market analyst at Oanda, attributed the rise in gold prices to reduced bets on Federal Reserve tightening next month. He stated, 'The primary driver for gold is the reduction in pricing of rate hikes by the Fed.'
Traders are now pricing in a 50pc chance of a hike in September, down from 60pc before the jobs report, according to the CME FedWatch Tool.