Gold Reclaims $4,400 Amid Fed Decision Uncertainty

Spot gold prices have reclaimed the $4,400 level, but bulls remain cautious ahead of the release of U.S. inflation data on Friday.

The dollar's trajectory hinges on CPI data as the Fed decision approaches, with strategists at prominent institutions emphasizing that hot CPI data would virtually lock in a September rate hike and support a stronger dollar.

Currently, the market is pricing in approximately a 60% probability of a rate hike by the Federal Reserve at its meeting on September 15-16.

The combination of elevated U.S. Treasury yields and a strengthening yen has placed pressure on the U.S. dollar, providing underlying support for gold prices.