Gold Prices Tread Water Ahead of PPI Release Amid Cooling Inflation

The US CPI rose 0.1% month-over-month in July, matching market expectations, and increased 3.4% year-over-year, slowing further from 3.5% in June.

This moderation in inflation rates has weakened the likelihood of a Fed rate hike, reducing pressure on gold prices.

The upcoming PPI release will be crucial in determining the direction of gold prices, with expectations for a 0.2% month-over-month rebound potentially pushing prices above $4,500 if it comes in below expectations.