Gold Rebounds on US Inflation Data, Fed Rate Hike Bets Soar
Gold prices rebounded on Friday, rising over 1 percent to $4,366.69 per ounce by 11:22 a.m. EDT (1522 GMT), as market expectations of an interest rate hike by the Federal Reserve next week grew stronger.
The recent US inflation data showed Consumer Price Index increasing 0.4 percent last month after edging up 0.1 percent in July, bolstering bets for a Fed rate hike.
Tai Wong, an independent metals trader, said 'Gold is recovering rapidly after a brief dip, as CPI data may be cementing expectations of a Fed rate hike next week.' He noted that price action suggests gold is finding a short-term base.
US gold futures gained 0.1 percent to $4,409.30, while oil prices fell on Friday but remained on course for a weekly gain. Higher oil prices stoke inflation fears, strengthening rate-hike bets.