Gold Prices Teeter Near $4,400 Amid Rate Hike Uncertainty

Gold prices hovered near $4,400 an ounce on Friday as traders waited for US inflation data due later in the week to gauge the Federal Reserve's interest rate path. Bullion traded in a narrow range, erasing earlier gains.

The metal has stayed largely within a range either side of $4,400 in recent weeks as traders try to assess Fed policy, with higher rates posing a headwind for gold. Swaps traders currently price in a 60% chance of a rate hike at next week's meeting.

UBS Group AG strategist Joni Teves noted that a September hike would likely generate a knee-jerk correction but not derail the broader recovery. A hold, on the other hand, could lead to a stronger upside response.