Gold Rebounds on Inflation Data Ahead of Fed Decision

Gold prices rebounded on Friday to reach $4,366.69 an ounce, up 1.2% from the previous day, as investors waited for the Federal Reserve's decision on interest rates later this week.

The Bureau of Labor Statistics reported that consumer prices rose 0.4% in August, while the 12-month inflation rate held at 3.4%. The energy index increased 2.1%, led by a 3.9% jump in gasoline.

The higher inflation rates strengthened expectations for a quarter-point interest rate increase, with futures implying an 85% probability of such a move at the Fed's meeting on September 15-16.