Gold Prices Soar to $4,400 Ahead of US Inflation Data

Gold prices surged to $4,400 an ounce on Wednesday ahead of the U.S. Consumer Price Index report, with traders positioning themselves for a potential move that could impact the Federal Reserve's interest rate decisions.

The rally comes as geopolitical tensions in the Strait of Hormuz continue to unsettle energy markets and drive up prices, which in turn adds pressure on inflation expectations and the Fed's stance on rates.

China's central bank has been quietly buying gold for 21 straight months, adding 640,000 troy ounces to its reserves in July, and Chinese gold-backed ETFs have also seen increased demand, signaling steady institutional interest.