Gold Pulls Back Amid Cooling Inflation and Diminishing Rate Hike Expectations

Gold prices pulled back from an 11-week high on August 13 as investors locked in profits after a strong rally driven by cooling U.S. inflation data.

The spot price of gold fell 0.5% to $4,383.53 per ounce in Asian trading, following a rise of more than 8% since early August.

U.S. Consumer Price Index (CPI) figures showed a year-over-year increase of 3.4%, down from 3.5% in June, easing pressure on Federal Reserve officials to raise interest rates.

The CME FedWatch tool indicates that markets now price in only about a 40% probability of a Fed rate hike at the September meeting, down from around 54% a week earlier.