Gold Prices Stabilize Ahead of Crucial Inflation Data

The price of gold has stabilized at around $4,400 per troy ounce in recent days. This stability is temporary, as markets are now focused on upcoming US inflation data and its impact on the Federal Reserve's September decision.

Fed Governor Christopher Waller recently confirmed that this week's inflation print will be a decisive factor for the Fed's interest rate decision. As a result, market expectations are divided regarding the Fed's meeting, with futures implying a roughly 60% probability of an interest rate hike.

This uncertainty leaves room for a sharp repricing and potentially volatile gold prices. A significant upside or downside surprise in the inflation data could lead to a correction in interest rate expectations, making it essential to monitor the upcoming release closely.