Gold Prices Surge as Investors Await US Inflation Data

Gold prices surged over 1% on Wednesday, buoyed by easing expectations for a Federal Reserve rate hike next month as market participants awaited the release of pivotal U.S. inflation data.

The spot gold price rose 1.1% to $4,413.69 per ounce by 10:45 GMT, with U.S. gold futures for December delivery increasing 0.7% to $4,473.10 per ounce.

UBS analyst Giovanni Staunovo attributed the move to weaker U.S. payrolls and a focus on inflation data, which is expected to rebound 0.1% last month after falling 0.4% in June.

However, with high U.S. gasoline prices still weighing on the market, Fed officials are likely to retain a hawkish message, limiting the upside for gold in the near term.